Correlation Between Growth Equity and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Growth Equity 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 Growth Equity and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Equity Investor and Calamos Global Equity, you can compare the effects of market volatilities on Growth Equity 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 Growth Equity with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Equity and Calamos Global.
Diversification Opportunities for Growth Equity and Calamos Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Calamos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Growth Equity Investor 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 Growth Equity 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 Growth Equity Investor 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 Growth Equity i.e., Growth Equity and Calamos Global go up and down completely randomly.
Pair Corralation between Growth Equity and Calamos Global
Assuming the 90 days horizon Growth Equity Investor is expected to under-perform the Calamos Global. In addition to that, Growth Equity is 1.23 times more volatile than Calamos Global Equity. It trades about -0.08 of its total potential returns per unit of risk. Calamos Global Equity is currently generating about -0.08 per unit of volatility. If you would invest 1,675 in Calamos Global Equity on January 13, 2025 and sell it today you would lose (88.00) from holding Calamos Global Equity or give up 5.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Equity Investor vs. Calamos Global Equity
Performance |
| Timeline |
| Growth Equity Investor |
| Calamos Global Equity |
Growth Equity and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Equity and Calamos Global
The main advantage of trading using opposite Growth Equity and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Equity 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.| Growth Equity vs. Growth Allocation Fund | Growth Equity vs. Defensive Market Strategies | Growth Equity vs. Defensive Market Strategies | Growth Equity vs. Value Equity Institutional |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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