Correlation Between Dreyfusstandish Global and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Dreyfusstandish Global 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 Dreyfusstandish Global and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfusstandish Global Fixed and Calamos Global Equity, you can compare the effects of market volatilities on Dreyfusstandish Global 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 Dreyfusstandish Global with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfusstandish Global and Calamos Global.
Diversification Opportunities for Dreyfusstandish Global and Calamos Global
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfusstandish and Calamos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed 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 Dreyfusstandish 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 Dreyfusstandish Global Fixed 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 Dreyfusstandish Global i.e., Dreyfusstandish Global and Calamos Global go up and down completely randomly.
Pair Corralation between Dreyfusstandish Global and Calamos Global
Assuming the 90 days horizon Dreyfusstandish Global is expected to generate 4.29 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Dreyfusstandish Global Fixed is 3.81 times less risky than Calamos Global. It trades about 0.1 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 1,326 in Calamos Global Equity on August 27, 2024 and sell it today you would earn a total of 611.00 from holding Calamos Global Equity or generate 46.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfusstandish Global Fixed vs. Calamos Global Equity
Performance |
| Timeline |
| Dreyfusstandish Global |
| Calamos Global Equity |
Dreyfusstandish Global and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfusstandish Global and Calamos Global
The main advantage of trading using opposite Dreyfusstandish Global and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfusstandish Global 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.The idea behind Dreyfusstandish Global Fixed and Calamos Global Equity 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.
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |