Correlation Between Calvert High and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Calvert High and Calamos Global 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 Calvert High and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert High Yield and Calamos Global Equity, you can compare the effects of market volatilities on Calvert High and Calamos Global 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 Calvert High with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert High and Calamos Global.
Diversification Opportunities for Calvert High and Calamos Global
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CALVERT and Calamos is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calvert High Yield and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Calvert High 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 Calvert High Yield are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Calvert High i.e., Calvert High and Calamos Global go up and down completely randomly.
Pair Corralation between Calvert High and Calamos Global
Assuming the 90 days horizon Calvert High is expected to generate 3.0 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Calvert High Yield is 4.31 times less risky than Calamos Global. It trades about 0.16 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,343 in Calamos Global Equity on September 2, 2024 and sell it today you would earn a total of 623.00 from holding Calamos Global Equity or generate 46.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert High Yield vs. Calamos Global Equity
Performance |
| Timeline |
| Calvert High Yield |
| Calamos Global Equity |
Calvert High and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert High and Calamos Global
The main advantage of trading using opposite Calvert High and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert High position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| Calvert High vs. Goldman Sachs Clean | Calvert High vs. Fidelity Advisor Gold | Calvert High vs. Franklin Gold Precious | Calvert High vs. Sprott Gold Equity |
| Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Global Growth | Calamos Global vs. Calamos Evolving World | Calamos Global vs. Calamos Market Neutral |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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