Correlation Between New Perspective and Calamos Global
Can any of the company-specific risk be diversified away by investing in both New Perspective 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 New Perspective and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Perspective Fund and Calamos Global Equity, you can compare the effects of market volatilities on New Perspective 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 New Perspective with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Perspective and Calamos Global.
Diversification Opportunities for New Perspective and Calamos Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Calamos is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund 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 New Perspective 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 New Perspective Fund 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 New Perspective i.e., New Perspective and Calamos Global go up and down completely randomly.
Pair Corralation between New Perspective and Calamos Global
Assuming the 90 days horizon New Perspective Fund is expected to generate 0.9 times more return on investment than Calamos Global. However, New Perspective Fund is 1.11 times less risky than Calamos Global. It trades about 0.23 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.15 per unit of risk. If you would invest 6,145 in New Perspective Fund on September 13, 2024 and sell it today you would earn a total of 171.00 from holding New Perspective Fund or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Perspective Fund vs. Calamos Global Equity
Performance |
| Timeline |
| New Perspective |
| Calamos Global Equity |
New Perspective and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Perspective and Calamos Global
The main advantage of trading using opposite New Perspective and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Perspective 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.| New Perspective vs. Income Fund Of | New Perspective vs. New World Fund | New Perspective vs. American Mutual Fund | New Perspective vs. American Mutual Fund |
| Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Innealta Capital Sector | Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Calamos Antetokounmpo Sustainable |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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