Correlation Between First Eagle and Calamos Global
Can any of the company-specific risk be diversified away by investing in both First Eagle 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 First Eagle and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and Calamos Global Growth, you can compare the effects of market volatilities on First Eagle 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 First Eagle with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Calamos Global.
Diversification Opportunities for First Eagle and Calamos Global
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Calamos is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth and First Eagle 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 First Eagle Global 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 Growth has no effect on the direction of First Eagle i.e., First Eagle and Calamos Global go up and down completely randomly.
Pair Corralation between First Eagle and Calamos Global
Assuming the 90 days horizon First Eagle Global is expected to generate 0.65 times more return on investment than Calamos Global. However, First Eagle Global is 1.53 times less risky than Calamos Global. It trades about 0.2 of its potential returns per unit of risk. Calamos Global Growth is currently generating about 0.06 per unit of risk. If you would invest 6,679 in First Eagle Global on November 27, 2024 and sell it today you would earn a total of 130.00 from holding First Eagle Global or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Calamos Global Growth
Performance |
| Timeline |
| First Eagle Global |
| Calamos Global Growth |
First Eagle and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Calamos Global
The main advantage of trading using opposite First Eagle and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle 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.| First Eagle vs. Ivy Asset Strategy | First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Templeton Global Bond | First Eagle vs. Loomis Sayles Strategic |
| Calamos Global vs. Pace High Yield | Calamos Global vs. Virtus High Yield | Calamos Global vs. Alpine High Yield | Calamos Global vs. Artisan High Income |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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