Correlation Between Pimco Global and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Pimco Global and Calamos Strategic 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 Pimco Global and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Multi Asset and Calamos Strategic Total, you can compare the effects of market volatilities on Pimco Global and Calamos Strategic 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 Pimco Global with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Calamos Strategic.
Diversification Opportunities for Pimco Global and Calamos Strategic
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pimco and Calamos is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Multi Asset and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Pimco Global 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 Pimco Global Multi Asset are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Pimco Global i.e., Pimco Global and Calamos Strategic go up and down completely randomly.
Pair Corralation between Pimco Global and Calamos Strategic
Assuming the 90 days horizon Pimco Global is expected to generate 2.63 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, Pimco Global Multi Asset is 2.13 times less risky than Calamos Strategic. It trades about 0.27 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,717 in Calamos Strategic Total on September 2, 2024 and sell it today you would earn a total of 97.00 from holding Calamos Strategic Total or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Global Multi Asset vs. Calamos Strategic Total
Performance |
| Timeline |
| Pimco Global Multi |
| Calamos Strategic Total |
Pimco Global and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Calamos Strategic
The main advantage of trading using opposite Pimco Global and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Rae Worldwide | Pimco Global vs. Pimco Foreign Bond |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |