Correlation Between Dreyfus Natural and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Dreyfus Natural 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 Dreyfus Natural and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Natural Resources and Calamos Global Equity, you can compare the effects of market volatilities on Dreyfus Natural 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 Dreyfus Natural with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Natural and Calamos Global.
Diversification Opportunities for Dreyfus Natural and Calamos Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dreyfus and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Natural Resources 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 Dreyfus Natural 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 Dreyfus Natural Resources 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 Dreyfus Natural i.e., Dreyfus Natural and Calamos Global go up and down completely randomly.
Pair Corralation between Dreyfus Natural and Calamos Global
Assuming the 90 days horizon Dreyfus Natural Resources is expected to generate 1.28 times more return on investment than Calamos Global. However, Dreyfus Natural is 1.28 times more volatile than Calamos Global Equity. It trades about 0.11 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.14 per unit of risk. If you would invest 4,069 in Dreyfus Natural Resources on September 2, 2024 and sell it today you would earn a total of 320.00 from holding Dreyfus Natural Resources or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Natural Resources vs. Calamos Global Equity
Performance |
| Timeline |
| Dreyfus Natural Resources |
| Calamos Global Equity |
Dreyfus Natural and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Natural and Calamos Global
The main advantage of trading using opposite Dreyfus Natural and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Natural 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.| Dreyfus Natural vs. Dreyfusstandish Global Fixed | Dreyfus Natural vs. Dreyfusstandish Global Fixed | Dreyfus Natural vs. Dreyfus High Yield | Dreyfus Natural vs. Dreyfus High Yield |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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