Correlation Between Gmo Global and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Gmo Global 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 Gmo Global and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Global Developed and Calamos Global Equity, you can compare the effects of market volatilities on Gmo Global 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 Gmo Global with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Global and Calamos Global.
Diversification Opportunities for Gmo Global and Calamos Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gmo and Calamos is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Developed 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 Gmo Global 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 Gmo Global Developed 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 Gmo Global i.e., Gmo Global and Calamos Global go up and down completely randomly.
Pair Corralation between Gmo Global and Calamos Global
Assuming the 90 days horizon Gmo Global is expected to generate 1.39 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Gmo Global Developed is 1.31 times less risky than Calamos Global. It trades about 0.09 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Calamos Global Equity on September 1, 2024 and sell it today you would earn a total of 686.00 from holding Calamos Global Equity or generate 54.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Global Developed vs. Calamos Global Equity
Performance |
| Timeline |
| Gmo Global Developed |
| Calamos Global Equity |
Gmo Global and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Global and Calamos Global
The main advantage of trading using opposite Gmo Global and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Global 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.| Gmo Global vs. Calamos Global Equity | Gmo Global vs. Us Strategic Equity | Gmo Global vs. Us Vector Equity | Gmo Global vs. Balanced Fund Retail |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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