Correlation Between Calamos International and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Calamos International and Calamos Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Calamos International and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos International Small and Calamos Global Growth, you can compare the effects of market volatilities on Calamos International and Calamos Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Calamos International with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos International and Calamos Global.
Diversification Opportunities for Calamos International and Calamos Global
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Calamos is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Small and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth and Calamos International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Calamos International Small are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Growth has no effect on the direction of Calamos International i.e., Calamos International and Calamos Global go up and down completely randomly.
Pair Corralation between Calamos International and Calamos Global
Assuming the 90 days horizon Calamos International is expected to generate 2.58 times less return on investment than Calamos Global. In addition to that, Calamos International is 1.53 times more volatile than Calamos Global Growth. It trades about 0.08 of its total potential returns per unit of risk. Calamos Global Growth is currently generating about 0.31 per unit of volatility. If you would invest 1,087 in Calamos Global Growth on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Calamos Global Growth or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos International Small vs. Calamos Global Growth
Performance |
| Timeline |
| Calamos International |
| Calamos Global Growth |
Calamos International and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos International and Calamos Global
The main advantage of trading using opposite Calamos International and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos International position performs unexpectedly, Calamos Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calamos Global will offset losses from the drop in Calamos Global's long position.The idea behind Calamos International Small and Calamos Global Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |