Correlation Between Calamos Global and Calamos International
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Calamos International 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 Global and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Growth and Calamos International Growth, you can compare the effects of market volatilities on Calamos Global and Calamos International 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 Global with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Calamos International.
Diversification Opportunities for Calamos Global and Calamos International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Calamos is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Growth and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Calamos Global 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 Global Growth are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Calamos Global i.e., Calamos Global and Calamos International go up and down completely randomly.
Pair Corralation between Calamos Global and Calamos International
Assuming the 90 days horizon Calamos Global Growth is expected to under-perform the Calamos International. In addition to that, Calamos Global is 1.11 times more volatile than Calamos International Growth. It trades about -0.23 of its total potential returns per unit of risk. Calamos International Growth is currently generating about -0.23 per unit of volatility. If you would invest 1,765 in Calamos International Growth on October 20, 2024 and sell it today you would lose (109.00) from holding Calamos International Growth or give up 6.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Calamos Global Growth vs. Calamos International Growth
Performance |
| Timeline |
| Calamos Global Growth |
| Calamos International |
Calamos Global and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Calamos International
The main advantage of trading using opposite Calamos Global and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Calamos Global vs. Calamos Growth Income | Calamos Global vs. Calamos Opportunistic Value | Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Market Neutral |
| Calamos International vs. Calamos Global Growth | Calamos International vs. Calamos Growth Income | Calamos International vs. Calamos Opportunistic Value | Calamos International vs. Calamos Global Equity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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