Correlation Between Calamos Timpani and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Calamos Timpani 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 Timpani 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 Timpani Smid and Calamos Global Vertible, you can compare the effects of market volatilities on Calamos Timpani 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 Timpani with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Timpani and Calamos Global.
Diversification Opportunities for Calamos Timpani and Calamos Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Calamos is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Timpani Smid and Calamos Global Vertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Vertible and Calamos Timpani 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 Timpani Smid 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 Vertible has no effect on the direction of Calamos Timpani i.e., Calamos Timpani and Calamos Global go up and down completely randomly.
Pair Corralation between Calamos Timpani and Calamos Global
Assuming the 90 days horizon Calamos Timpani Smid is expected to generate 3.12 times more return on investment than Calamos Global. However, Calamos Timpani is 3.12 times more volatile than Calamos Global Vertible. It trades about 0.16 of its potential returns per unit of risk. Calamos Global Vertible is currently generating about 0.17 per unit of risk. If you would invest 954.00 in Calamos Timpani Smid on September 1, 2024 and sell it today you would earn a total of 743.00 from holding Calamos Timpani Smid or generate 77.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Calamos Timpani Smid vs. Calamos Global Vertible
Performance |
| Timeline |
| Calamos Timpani Smid |
| Calamos Global Vertible |
Calamos Timpani and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Timpani and Calamos Global
The main advantage of trading using opposite Calamos Timpani and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Timpani 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 Timpani vs. Absolute Convertible Arbitrage | Calamos Timpani vs. Columbia Vertible Securities | Calamos Timpani vs. Advent Claymore Convertible | Calamos Timpani vs. Fidelity Sai Convertible |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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