Correlation Between NYSE Composite and Calamos Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Calamos Global Growth, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calamos Global.
Diversification Opportunities for NYSE Composite and Calamos Global
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Calamos is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth and NYSE Composite 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 NYSE Composite 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 Growth has no effect on the direction of NYSE Composite i.e., NYSE Composite and Calamos Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Calamos Global
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Calamos Global. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.26 times less risky than Calamos Global. The index trades about -0.05 of its potential returns per unit of risk. The Calamos Global Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Calamos Global Growth on November 27, 2024 and sell it today you would earn a total of 8.00 from holding Calamos Global Growth or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Calamos Global Growth
Performance |
| Timeline |
NYSE Composite and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calamos Global Growth
Pair trading matchups for Calamos Global
Pair Trading with NYSE Composite and Calamos Global
The main advantage of trading using opposite NYSE Composite and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Unum Group | NYSE Composite vs. Palomar Holdings | NYSE Composite vs. Fidelity National Financial | NYSE Composite vs. ZW Data Action |
| Calamos Global vs. Pace High Yield | Calamos Global vs. Virtus High Yield | Calamos Global vs. Alpine High Yield | Calamos Global vs. Artisan High Income |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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