Correlation Between Calamos Global and Calamos Evolving
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Calamos Evolving 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 Evolving 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 Evolving World, you can compare the effects of market volatilities on Calamos Global and Calamos Evolving 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 Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Calamos Evolving.
Diversification Opportunities for Calamos Global and Calamos Evolving
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Calamos is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Growth and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World 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 Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Calamos Global i.e., Calamos Global and Calamos Evolving go up and down completely randomly.
Pair Corralation between Calamos Global and Calamos Evolving
Assuming the 90 days horizon Calamos Global Growth is expected to under-perform the Calamos Evolving. In addition to that, Calamos Global is 1.56 times more volatile than Calamos Evolving World. It trades about -0.23 of its total potential returns per unit of risk. Calamos Evolving World is currently generating about -0.04 per unit of volatility. If you would invest 1,932 in Calamos Evolving World on October 20, 2024 and sell it today you would lose (18.00) from holding Calamos Evolving World or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Calamos Global Growth vs. Calamos Evolving World
Performance |
| Timeline |
| Calamos Global Growth |
| Calamos Evolving World |
Calamos Global and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Calamos Evolving
The main advantage of trading using opposite Calamos Global and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Calamos Evolving 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 Evolving will offset losses from the drop in Calamos Evolving'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 Evolving vs. Calamos International Growth | Calamos Evolving vs. Calamos Growth Income | Calamos Evolving vs. Calamos Global Growth | Calamos Evolving vs. Calamos Vertible Fund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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