Correlation Between First Trust and Calamos Global
Can any of the company-specific risk be diversified away by investing in both First Trust 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 Trust 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 Trust Intermediate and Calamos Global Dynamic, you can compare the effects of market volatilities on First Trust 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 Trust with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Calamos Global.
Diversification Opportunities for First Trust and Calamos Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Calamos is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Intermediate and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic and First Trust 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 Trust Intermediate 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 Dynamic has no effect on the direction of First Trust i.e., First Trust and Calamos Global go up and down completely randomly.
Pair Corralation between First Trust and Calamos Global
Considering the 90-day investment horizon First Trust Intermediate is expected to under-perform the Calamos Global. But the fund apears to be less risky and, when comparing its historical volatility, First Trust Intermediate is 1.19 times less risky than Calamos Global. The fund trades about -0.03 of its potential returns per unit of risk. The Calamos Global Dynamic is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Calamos Global Dynamic on September 18, 2024 and sell it today you would earn a total of 15.00 from holding Calamos Global Dynamic or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Intermediate vs. Calamos Global Dynamic
Performance |
| Timeline |
| First Trust Intermediate |
| Calamos Global Dynamic |
First Trust and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Calamos Global
The main advantage of trading using opposite First Trust and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust 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 Trust vs. RiverNorth Flexible Municipalome | First Trust vs. DWS Municipal Income | First Trust vs. Blackrock Munivest | First Trust vs. MFS Municipal Income |
| Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos Strategic Total | Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Calamos LongShort Equity |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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