Correlation Between Calamos Global and Calamos Investment

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Can any of the company-specific risk be diversified away by investing in both Calamos Global and Calamos Investment 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 Investment 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 Calamos Investment Trust, you can compare the effects of market volatilities on Calamos Global and Calamos Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Calamos Investment.

Diversification Opportunities for Calamos Global and Calamos Investment

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Calamos and Calamos is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Vertible and Calamos Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Investment Trust 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 Calamos Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Investment Trust has no effect on the direction of Calamos Global i.e., Calamos Global and Calamos Investment go up and down completely randomly.

Pair Corralation between Calamos Global and Calamos Investment

Assuming the 90 days horizon Calamos Global Vertible is expected to generate 1.16 times more return on investment than Calamos Investment. However, Calamos Global is 1.16 times more volatile than Calamos Investment Trust. It trades about 0.12 of its potential returns per unit of risk. Calamos Investment Trust is currently generating about 0.02 per unit of risk. If you would invest  970.00  in Calamos Global Vertible on September 12, 2024 and sell it today you would earn a total of  281.00  from holding Calamos Global Vertible or generate 28.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy61.13%
ValuesDaily Returns

Calamos Global Vertible  vs.  Calamos Investment Trust

 Performance 
       Timeline  
Calamos Global Vertible 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Vertible are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Calamos Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Calamos Investment Trust 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Investment Trust are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calamos Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Global and Calamos Investment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calamos Global and Calamos Investment

The main advantage of trading using opposite Calamos Global and Calamos Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Calamos Investment 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 Investment will offset losses from the drop in Calamos Investment's long position.
The idea behind Calamos Global Vertible and Calamos Investment Trust 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.
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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