Correlation Between Calamos Global and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Calamos Growth 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 Growth 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 Growth Income, you can compare the effects of market volatilities on Calamos Global and Calamos Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Calamos Growth.
Diversification Opportunities for Calamos Global and Calamos Growth
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Growth and Calamos Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth Income 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth Income has no effect on the direction of Calamos Global i.e., Calamos Global and Calamos Growth go up and down completely randomly.
Pair Corralation between Calamos Global and Calamos Growth
Assuming the 90 days horizon Calamos Global is expected to generate 1.17 times less return on investment than Calamos Growth. In addition to that, Calamos Global is 1.06 times more volatile than Calamos Growth Income. It trades about 0.07 of its total potential returns per unit of risk. Calamos Growth Income is currently generating about 0.08 per unit of volatility. If you would invest 3,768 in Calamos Growth Income on October 20, 2024 and sell it today you would earn a total of 1,185 from holding Calamos Growth Income or generate 31.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Growth vs. Calamos Growth Income
Performance |
| Timeline |
| Calamos Global Growth |
| Calamos Growth Income |
Calamos Global and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Calamos Growth
The main advantage of trading using opposite Calamos Global and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth'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 Growth vs. Calamos Growth Fund | Calamos Growth vs. Calamos Vertible Fund | Calamos Growth vs. Calamos Global Growth | Calamos Growth vs. Calamos Market Neutral |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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