Correlation Between 1919 Financial and Calamos Global
Can any of the company-specific risk be diversified away by investing in both 1919 Financial 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 1919 Financial and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1919 Financial Services and Calamos Global Equity, you can compare the effects of market volatilities on 1919 Financial 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 1919 Financial with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1919 Financial and Calamos Global.
Diversification Opportunities for 1919 Financial and Calamos Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 1919 and Calamos is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding 1919 Financial Services 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 1919 Financial 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 1919 Financial Services 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 1919 Financial i.e., 1919 Financial and Calamos Global go up and down completely randomly.
Pair Corralation between 1919 Financial and Calamos Global
Assuming the 90 days horizon 1919 Financial Services is expected to under-perform the Calamos Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, 1919 Financial Services is 1.04 times less risky than Calamos Global. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Calamos Global Equity is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,947 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 47.00 from holding Calamos Global Equity or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
1919 Financial Services vs. Calamos Global Equity
Performance |
| Timeline |
| 1919 Financial Services |
| Calamos Global Equity |
1919 Financial and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1919 Financial and Calamos Global
The main advantage of trading using opposite 1919 Financial and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1919 Financial 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.| 1919 Financial vs. Morningstar Unconstrained Allocation | 1919 Financial vs. Upright Assets Allocation | 1919 Financial vs. T Rowe Price | 1919 Financial vs. Aqr Large Cap |
| Calamos Global vs. American Funds New | Calamos Global vs. American Funds New | Calamos Global vs. New Perspective Fund | Calamos Global vs. New Perspective Fund |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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