Correlation Between Calamos LongShort and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Calamos LongShort 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 LongShort 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 LongShort Equity and Calamos Global Total, you can compare the effects of market volatilities on Calamos LongShort 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 LongShort with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and Calamos Global.
Diversification Opportunities for Calamos LongShort and Calamos Global
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and Calamos Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Total and Calamos LongShort 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 LongShort Equity 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 Total has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and Calamos Global go up and down completely randomly.
Pair Corralation between Calamos LongShort and Calamos Global
Considering the 90-day investment horizon Calamos LongShort is expected to generate 2.29 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Calamos LongShort Equity is 1.18 times less risky than Calamos Global. It trades about 0.05 of its potential returns per unit of risk. Calamos Global Total is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 777.00 in Calamos Global Total on August 24, 2024 and sell it today you would earn a total of 418.00 from holding Calamos Global Total or generate 53.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos LongShort Equity vs. Calamos Global Total
Performance |
| Timeline |
| Calamos LongShort Equity |
| Calamos Global Total |
Calamos LongShort and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos LongShort and Calamos Global
The main advantage of trading using opposite Calamos LongShort and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort 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.| Calamos LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
| Calamos Global vs. Calamos Convertible Opportunities | Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos LongShort Equity | Calamos Global vs. Calamos Strategic Total |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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