Correlation Between Davis New and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Davis New 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 Davis New and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Davis New York and Calamos Global Growth, you can compare the effects of market volatilities on Davis New 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 Davis New with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Davis New and Calamos Global.
Diversification Opportunities for Davis New and Calamos Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Davis and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Davis New York 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 Davis New 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 Davis New York 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 Davis New i.e., Davis New and Calamos Global go up and down completely randomly.
Pair Corralation between Davis New and Calamos Global
Assuming the 90 days horizon Davis New is expected to generate 1.64 times less return on investment than Calamos Global. In addition to that, Davis New is 1.55 times more volatile than Calamos Global Growth. It trades about 0.06 of its total potential returns per unit of risk. Calamos Global Growth is currently generating about 0.16 per unit of volatility. If you would invest 835.00 in Calamos Global Growth on September 1, 2024 and sell it today you would earn a total of 289.00 from holding Calamos Global Growth or generate 34.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Davis New York vs. Calamos Global Growth
Performance |
| Timeline |
| Davis New York |
| Calamos Global Growth |
Davis New and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Davis New and Calamos Global
The main advantage of trading using opposite Davis New and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Davis New 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.| Davis New vs. Harbor Diversified International | Davis New vs. Transamerica Emerging Markets | Davis New vs. Goldman Sachs Emerging | Davis New vs. Aqr Long Short Equity |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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