Correlation Between Balanced Fund and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Balanced Fund 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 Balanced Fund and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Calamos Global Equity, you can compare the effects of market volatilities on Balanced Fund 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 Balanced Fund with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Calamos Global.
Diversification Opportunities for Balanced Fund and Calamos Global
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Balanced and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail 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 Balanced Fund 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 Balanced Fund Retail 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 Balanced Fund i.e., Balanced Fund and Calamos Global go up and down completely randomly.
Pair Corralation between Balanced Fund and Calamos Global
Assuming the 90 days horizon Balanced Fund is expected to generate 1.63 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Balanced Fund Retail is 1.35 times less risky than Calamos Global. It trades about 0.26 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,859 in Calamos Global Equity on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Calamos Global Equity or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Calamos Global Equity
Performance |
| Timeline |
| Balanced Fund Retail |
| Calamos Global Equity |
Balanced Fund and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Calamos Global
The main advantage of trading using opposite Balanced Fund and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund 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.| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
| Calamos Global vs. Rbc Emerging Markets | Calamos Global vs. Western Asset Diversified | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Transamerica Emerging Markets |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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