Correlation Between Tax-managed and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Tax-managed 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 Tax-managed and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tax Managed Mid Small and Calamos Global Equity, you can compare the effects of market volatilities on Tax-managed 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 Tax-managed with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tax-managed and Calamos Global.
Diversification Opportunities for Tax-managed and Calamos Global
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tax-managed and Calamos is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tax Managed Mid Small 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 Tax-managed 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 Tax Managed Mid Small 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 Tax-managed i.e., Tax-managed and Calamos Global go up and down completely randomly.
Pair Corralation between Tax-managed and Calamos Global
Assuming the 90 days horizon Tax Managed Mid Small is expected to generate 1.85 times more return on investment than Calamos Global. However, Tax-managed is 1.85 times more volatile than Calamos Global Equity. It trades about 0.29 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.37 per unit of risk. If you would invest 3,959 in Tax Managed Mid Small on September 1, 2024 and sell it today you would earn a total of 346.00 from holding Tax Managed Mid Small or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tax Managed Mid Small vs. Calamos Global Equity
Performance |
| Timeline |
| Tax Managed Mid |
| Calamos Global Equity |
Tax-managed and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tax-managed and Calamos Global
The main advantage of trading using opposite Tax-managed and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tax-managed 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.| Tax-managed vs. Calamos Global Equity | Tax-managed vs. Icon Equity Income | Tax-managed vs. Artisan Select Equity | Tax-managed vs. Balanced Fund Retail |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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