Correlation Between Principal Lifetime and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Principal Lifetime 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 Principal Lifetime and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Principal Lifetime Hybrid and Calamos Global Growth, you can compare the effects of market volatilities on Principal Lifetime 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 Principal Lifetime with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Principal Lifetime and Calamos Global.
Diversification Opportunities for Principal Lifetime and Calamos Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PRINCIPAL and Calamos is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Principal Lifetime Hybrid 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 Principal Lifetime 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 Principal Lifetime Hybrid 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 Principal Lifetime i.e., Principal Lifetime and Calamos Global go up and down completely randomly.
Pair Corralation between Principal Lifetime and Calamos Global
Assuming the 90 days horizon Principal Lifetime is expected to generate 1.25 times less return on investment than Calamos Global. In addition to that, Principal Lifetime is 1.04 times more volatile than Calamos Global Growth. It trades about 0.12 of its total potential returns per unit of risk. Calamos Global Growth is currently generating about 0.15 per unit of volatility. If you would invest 866.00 in Calamos Global Growth on September 4, 2024 and sell it today you would earn a total of 261.00 from holding Calamos Global Growth or generate 30.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Principal Lifetime Hybrid vs. Calamos Global Growth
Performance |
| Timeline |
| Principal Lifetime Hybrid |
| Calamos Global Growth |
Principal Lifetime and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Principal Lifetime and Calamos Global
The main advantage of trading using opposite Principal Lifetime and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Principal Lifetime 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.| Principal Lifetime vs. Strategic Asset Management | Principal Lifetime vs. Strategic Asset Management | Principal Lifetime vs. Strategic Asset Management | Principal Lifetime vs. Strategic Asset Management |
| Calamos Global vs. Small Pany Growth | Calamos Global vs. Small Midcap Dividend Income | Calamos Global vs. Ab Small Cap | Calamos Global vs. The Hartford Small |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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