Correlation Between 1919 Financial and Calamos International
Can any of the company-specific risk be diversified away by investing in both 1919 Financial and Calamos International 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 International 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 International Growth, you can compare the effects of market volatilities on 1919 Financial and Calamos International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1919 Financial and Calamos International.
Diversification Opportunities for 1919 Financial and Calamos International
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 1919 and Calamos is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding 1919 Financial Services and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of 1919 Financial i.e., 1919 Financial and Calamos International go up and down completely randomly.
Pair Corralation between 1919 Financial and Calamos International
Assuming the 90 days horizon 1919 Financial Services is expected to under-perform the Calamos International. In addition to that, 1919 Financial is 2.85 times more volatile than Calamos International Growth. It trades about -0.24 of its total potential returns per unit of risk. Calamos International Growth is currently generating about 0.08 per unit of volatility. If you would invest 1,821 in Calamos International Growth on September 13, 2024 and sell it today you would earn a total of 24.00 from holding Calamos International Growth or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1919 Financial Services vs. Calamos International Growth
Performance |
| Timeline |
| 1919 Financial Services |
| Calamos International |
1919 Financial and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1919 Financial and Calamos International
The main advantage of trading using opposite 1919 Financial and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1919 Financial position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| 1919 Financial vs. Alliancebernstein Global High | 1919 Financial vs. Legg Mason Global | 1919 Financial vs. Commonwealth Global Fund | 1919 Financial vs. Ab Global Real |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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