Correlation Between Calamos Global and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Wells Fargo 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 Wells Fargo 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 Wells Fargo Short Term, you can compare the effects of market volatilities on Calamos Global and Wells Fargo 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 Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Wells Fargo.
Diversification Opportunities for Calamos Global and Wells Fargo
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Wells is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Vertible and Wells Fargo Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo Short 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 Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo Short has no effect on the direction of Calamos Global i.e., Calamos Global and Wells Fargo go up and down completely randomly.
Pair Corralation between Calamos Global and Wells Fargo
Assuming the 90 days horizon Calamos Global Vertible is expected to generate 3.01 times more return on investment than Wells Fargo. However, Calamos Global is 3.01 times more volatile than Wells Fargo Short Term. It trades about 0.1 of its potential returns per unit of risk. Wells Fargo Short Term is currently generating about 0.15 per unit of risk. If you would invest 1,037 in Calamos Global Vertible on November 2, 2024 and sell it today you would earn a total of 232.00 from holding Calamos Global Vertible or generate 22.37% 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. Wells Fargo Short Term
Performance |
| Timeline |
| Calamos Global Vertible |
| Wells Fargo Short |
Calamos Global and Wells Fargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Wells Fargo
The main advantage of trading using opposite Calamos Global and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo'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 |
| Wells Fargo vs. Angel Oak Financial | Wells Fargo vs. Siit High Yield | Wells Fargo vs. Barings High Yield | Wells Fargo vs. Ab Bond Inflation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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