Correlation Between Calamos Global and The Hartford
Can any of the company-specific risk be diversified away by investing in both Calamos Global and The Hartford 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 The Hartford 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 Hartford Growth, you can compare the effects of market volatilities on Calamos Global and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and The Hartford.
Diversification Opportunities for Calamos Global and The Hartford
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and The is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Vertible and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Calamos Global i.e., Calamos Global and The Hartford go up and down completely randomly.
Pair Corralation between Calamos Global and The Hartford
Assuming the 90 days horizon Calamos Global is expected to generate 3.18 times less return on investment than The Hartford. But when comparing it to its historical volatility, Calamos Global Vertible is 2.77 times less risky than The Hartford. It trades about 0.1 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,724 in The Hartford Growth on November 2, 2024 and sell it today you would earn a total of 3,198 from holding The Hartford Growth or generate 85.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Vertible vs. The Hartford Growth
Performance |
| Timeline |
| Calamos Global Vertible |
| Hartford Growth |
Calamos Global and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and The Hartford
The main advantage of trading using opposite Calamos Global and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Calamos Global vs. Angel Oak Financial | Calamos Global vs. Morningstar Defensive Bond | Calamos Global vs. Rbc Bluebay Emerging | Calamos Global vs. Ab Bond Inflation |
| The Hartford vs. Mutual Of America | The Hartford vs. Victory Rs Partners | The Hartford vs. Omni Small Cap Value | The Hartford vs. Applied Finance Explorer |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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