Correlation Between Calamos Global and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Emerging Markets 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 Emerging Markets 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 The Emerging Markets, you can compare the effects of market volatilities on Calamos Global and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Emerging Markets.
Diversification Opportunities for Calamos Global and Emerging Markets
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Emerging is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Vertible and The Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Calamos Global i.e., Calamos Global and Emerging Markets go up and down completely randomly.
Pair Corralation between Calamos Global and Emerging Markets
Assuming the 90 days horizon Calamos Global Vertible is expected to generate 0.51 times more return on investment than Emerging Markets. However, Calamos Global Vertible is 1.95 times less risky than Emerging Markets. It trades about 0.12 of its potential returns per unit of risk. The Emerging Markets is currently generating about 0.05 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Vertible vs. The Emerging Markets
Performance |
| Timeline |
| Calamos Global Vertible |
| Emerging Markets |
Calamos Global and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Emerging Markets
The main advantage of trading using opposite Calamos Global and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Calamos Global vs. Franklin Vertible Securities | Calamos Global vs. Franklin Vertible Securities | Calamos Global vs. Franklin Vertible Securities | Calamos Global vs. Franklin Vertible Securities |
| Emerging Markets vs. Ab Global Risk | Emerging Markets vs. Jhancock Global Equity | Emerging Markets vs. Kinetics Global Fund | Emerging Markets vs. Ab Global Real |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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