Correlation Between Microsoft and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Microsoft 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 Microsoft and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Calamos Global Sustainable, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Calamos Global.
Diversification Opportunities for Microsoft and Calamos Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Microsoft and Calamos is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Calamos Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Susta and Microsoft 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 Microsoft 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 Susta has no effect on the direction of Microsoft i.e., Microsoft and Calamos Global go up and down completely randomly.
Pair Corralation between Microsoft and Calamos Global
If you would invest 41,696 in Microsoft on September 20, 2024 and sell it today you would earn a total of 3,750 from holding Microsoft or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Microsoft vs. Calamos Global Sustainable
Performance |
| Timeline |
| Microsoft |
| Calamos Global Susta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Calamos Global
The main advantage of trading using opposite Microsoft and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta | Microsoft vs. Nextnav Acquisition Corp |
| Calamos Global vs. Voya High Yield | Calamos Global vs. Jpmorgan High Yield | Calamos Global vs. Artisan High Income | Calamos Global vs. Virtus High Yield |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |