Correlation Between Calamos Market and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Calamos Market 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 Market 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 Market Neutral and Calamos Global Growth, you can compare the effects of market volatilities on Calamos Market 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 Market with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Calamos Global.
Diversification Opportunities for Calamos Market and Calamos Global
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth and Calamos Market 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 Market Neutral 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 Growth has no effect on the direction of Calamos Market i.e., Calamos Market and Calamos Global go up and down completely randomly.
Pair Corralation between Calamos Market and Calamos Global
Assuming the 90 days horizon Calamos Market is expected to generate 4.36 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Calamos Market Neutral is 4.7 times less risky than Calamos Global. It trades about 0.33 of its potential returns per unit of risk. Calamos Global Growth is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,299 in Calamos Global Growth on September 1, 2024 and sell it today you would earn a total of 44.00 from holding Calamos Global Growth or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Market Neutral vs. Calamos Global Growth
Performance |
| Timeline |
| Calamos Market Neutral |
| Calamos Global Growth |
Calamos Market and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Calamos Global
The main advantage of trading using opposite Calamos Market and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market 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.The idea behind Calamos Market Neutral and Calamos Global Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Calamos Global vs. Calamos Growth Income | Calamos Global vs. Calamos Opportunistic Value | Calamos Global vs. Calamos International Growth | Calamos Global 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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