Correlation Between Rbc Global and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Rbc Global 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 Rbc Global and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbc Global Equity and Calamos Global Equity, you can compare the effects of market volatilities on Rbc Global 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 Rbc Global with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbc Global and Calamos Global.
Diversification Opportunities for Rbc Global and Calamos Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rbc and Calamos is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Rbc Global Equity 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 Rbc 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 Rbc Global Equity 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 Rbc Global i.e., Rbc Global and Calamos Global go up and down completely randomly.
Pair Corralation between Rbc Global and Calamos Global
Assuming the 90 days horizon Rbc Global Equity is expected to generate 0.92 times more return on investment than Calamos Global. However, Rbc Global Equity is 1.09 times less risky than Calamos Global. It trades about 0.35 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.31 per unit of risk. If you would invest 1,048 in Rbc Global Equity on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Rbc Global Equity or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbc Global Equity vs. Calamos Global Equity
Performance |
| Timeline |
| Rbc Global Equity |
| Calamos Global Equity |
Rbc Global and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbc Global and Calamos Global
The main advantage of trading using opposite Rbc Global and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbc Global 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.| Rbc Global vs. Royce Opportunity Fund | Rbc Global vs. Great West Loomis Sayles | Rbc Global vs. Ab Discovery Value | Rbc Global vs. Hennessy Nerstone Mid |
| Calamos Global vs. Rbc Emerging Markets | Calamos Global vs. Western Asset Diversified | Calamos Global vs. Aqr Long Short Equity | Calamos Global vs. Transamerica Emerging Markets |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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