Correlation Between Calamos Global and Bbh Limited
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Bbh Limited 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 Bbh Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Vertible and Bbh Limited Duration, you can compare the effects of market volatilities on Calamos Global and Bbh Limited 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 Bbh Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Bbh Limited.
Diversification Opportunities for Calamos Global and Bbh Limited
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Bbh is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Vertible and Bbh Limited Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Limited Duration 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 Vertible are associated (or correlated) with Bbh Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Limited Duration has no effect on the direction of Calamos Global i.e., Calamos Global and Bbh Limited go up and down completely randomly.
Pair Corralation between Calamos Global and Bbh Limited
Assuming the 90 days horizon Calamos Global Vertible is expected to generate 4.29 times more return on investment than Bbh Limited. However, Calamos Global is 4.29 times more volatile than Bbh Limited Duration. It trades about 0.17 of its potential returns per unit of risk. Bbh Limited Duration is currently generating about 0.27 per unit of risk. If you would invest 1,023 in Calamos Global Vertible on September 1, 2024 and sell it today you would earn a total of 227.00 from holding Calamos Global Vertible or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Vertible vs. Bbh Limited Duration
Performance |
| Timeline |
| Calamos Global Vertible |
| Bbh Limited Duration |
Calamos Global and Bbh Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Bbh Limited
The main advantage of trading using opposite Calamos Global and Bbh Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Bbh Limited 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 Bbh Limited will offset losses from the drop in Bbh Limited's long position.The idea behind Calamos Global Vertible and Bbh Limited Duration 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.
| Bbh Limited vs. T Rowe Price | Bbh Limited vs. Bbh Limited Duration | Bbh Limited vs. Calamos Global Vertible | Bbh Limited vs. Prudential Floating Rate |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |