Correlation Between Victory Diversified and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Victory Diversified 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 Victory Diversified and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Diversified Stock and Calamos Global Equity, you can compare the effects of market volatilities on Victory Diversified 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 Victory Diversified with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Diversified and Calamos Global.
Diversification Opportunities for Victory Diversified and Calamos Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Victory and Calamos is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Victory Diversified Stock 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 Victory Diversified 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 Victory Diversified Stock 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 Victory Diversified i.e., Victory Diversified and Calamos Global go up and down completely randomly.
Pair Corralation between Victory Diversified and Calamos Global
Assuming the 90 days horizon Victory Diversified Stock is expected to generate 1.04 times more return on investment than Calamos Global. However, Victory Diversified is 1.04 times more volatile than Calamos Global Equity. It trades about 0.18 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.15 per unit of risk. If you would invest 2,258 in Victory Diversified Stock on September 12, 2024 and sell it today you would earn a total of 205.00 from holding Victory Diversified Stock or generate 9.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Diversified Stock vs. Calamos Global Equity
Performance |
| Timeline |
| Victory Diversified Stock |
| Calamos Global Equity |
Victory Diversified and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Diversified and Calamos Global
The main advantage of trading using opposite Victory Diversified and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Diversified 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.| Victory Diversified vs. Vanguard Total Stock | Victory Diversified vs. Vanguard 500 Index | Victory Diversified vs. Vanguard Total Stock | Victory Diversified vs. Vanguard Total Stock |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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