Correlation Between Calamos Total and Templeton Developing
Can any of the company-specific risk be diversified away by investing in both Calamos Total and Templeton Developing 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 Total and Templeton Developing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Total Return and Templeton Developing Markets, you can compare the effects of market volatilities on Calamos Total and Templeton Developing 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 Total with a short position of Templeton Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Total and Templeton Developing.
Diversification Opportunities for Calamos Total and Templeton Developing
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Templeton is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Total Return and Templeton Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Developing and Calamos Total 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 Total Return are associated (or correlated) with Templeton Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Developing has no effect on the direction of Calamos Total i.e., Calamos Total and Templeton Developing go up and down completely randomly.
Pair Corralation between Calamos Total and Templeton Developing
Assuming the 90 days horizon Calamos Total Return is expected to generate 0.38 times more return on investment than Templeton Developing. However, Calamos Total Return is 2.63 times less risky than Templeton Developing. It trades about 0.11 of its potential returns per unit of risk. Templeton Developing Markets is currently generating about -0.12 per unit of risk. If you would invest 897.00 in Calamos Total Return on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Calamos Total Return or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Total Return vs. Templeton Developing Markets
Performance |
| Timeline |
| Calamos Total Return |
| Templeton Developing |
Calamos Total and Templeton Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Total and Templeton Developing
The main advantage of trading using opposite Calamos Total and Templeton Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Total position performs unexpectedly, Templeton Developing 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 Templeton Developing will offset losses from the drop in Templeton Developing's long position.| Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Innealta Capital Sector | Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Calamos Antetokounmpo Sustainable |
| Templeton Developing vs. Templeton Foreign Fund | Templeton Developing vs. Franklin Mutual Global | Templeton Developing vs. Templeton Growth Fund | Templeton Developing vs. Franklin Real Estate |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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