Correlation Between Transamerica Asset and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Transamerica Asset 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 Transamerica Asset and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Asset Allocation and Calamos Global Equity, you can compare the effects of market volatilities on Transamerica Asset 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 Transamerica Asset with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Asset and Calamos Global.
Diversification Opportunities for Transamerica Asset and Calamos Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Transamerica and Calamos is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Asset Allocation 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 Transamerica Asset 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 Transamerica Asset Allocation 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 Transamerica Asset i.e., Transamerica Asset and Calamos Global go up and down completely randomly.
Pair Corralation between Transamerica Asset and Calamos Global
Assuming the 90 days horizon Transamerica Asset is expected to generate 1.82 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Transamerica Asset Allocation is 1.7 times less risky than Calamos Global. It trades about 0.12 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 644.00 from holding Calamos Global Equity or generate 47.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Asset Allocation vs. Calamos Global Equity
Performance |
| Timeline |
| Transamerica Asset |
| Calamos Global Equity |
Transamerica Asset and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Asset and Calamos Global
The main advantage of trading using opposite Transamerica Asset and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Asset 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.| Transamerica Asset vs. Calamos Global Equity | Transamerica Asset vs. Qs International Equity | Transamerica Asset vs. Gmo Global Equity | Transamerica Asset vs. Locorr Dynamic Equity |
| Calamos Global vs. American Funds New | Calamos Global vs. American Funds New | Calamos Global vs. New Perspective Fund | Calamos Global vs. New Perspective Fund |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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