Correlation Between Multimedia Portfolio and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Multimedia Portfolio 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 Multimedia Portfolio and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimedia Portfolio Multimedia and Calamos Global Equity, you can compare the effects of market volatilities on Multimedia Portfolio 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 Multimedia Portfolio with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimedia Portfolio and Calamos Global.
Diversification Opportunities for Multimedia Portfolio and Calamos Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multimedia and Calamos is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Multimedia Portfolio Multimedi 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 Multimedia Portfolio 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 Multimedia Portfolio Multimedia 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 Multimedia Portfolio i.e., Multimedia Portfolio and Calamos Global go up and down completely randomly.
Pair Corralation between Multimedia Portfolio and Calamos Global
Assuming the 90 days horizon Multimedia Portfolio Multimedia is expected to generate 1.2 times more return on investment than Calamos Global. However, Multimedia Portfolio is 1.2 times more volatile than Calamos Global Equity. It trades about 0.1 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.1 per unit of risk. If you would invest 6,768 in Multimedia Portfolio Multimedia on August 27, 2024 and sell it today you would earn a total of 4,271 from holding Multimedia Portfolio Multimedia or generate 63.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multimedia Portfolio Multimedi vs. Calamos Global Equity
Performance |
| Timeline |
| Multimedia Portfolio |
| Calamos Global Equity |
Multimedia Portfolio and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimedia Portfolio and Calamos Global
The main advantage of trading using opposite Multimedia Portfolio and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimedia Portfolio 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.| Multimedia Portfolio vs. Fidelity Freedom 2015 | Multimedia Portfolio vs. Fidelity Puritan Fund | Multimedia Portfolio vs. Fidelity Puritan Fund | Multimedia Portfolio vs. Fidelity Pennsylvania Municipal |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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