Correlation Between Wells Fargo and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Wells Fargo 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 Wells Fargo and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Short Term and Calamos Global Vertible, you can compare the effects of market volatilities on Wells Fargo 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 Wells Fargo with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Calamos Global.
Diversification Opportunities for Wells Fargo and Calamos Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wells and Calamos is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Short Term and Calamos Global Vertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Vertible and Wells Fargo 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 Wells Fargo Short Term 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 Vertible has no effect on the direction of Wells Fargo i.e., Wells Fargo and Calamos Global go up and down completely randomly.
Pair Corralation between Wells Fargo and Calamos Global
Assuming the 90 days horizon Wells Fargo is expected to generate 2.12 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Wells Fargo Short Term is 5.15 times less risky than Calamos Global. It trades about 0.21 of its potential returns per unit of risk. Calamos Global Vertible is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,231 in Calamos Global Vertible on October 21, 2024 and sell it today you would earn a total of 9.00 from holding Calamos Global Vertible or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wells Fargo Short Term vs. Calamos Global Vertible
Performance |
| Timeline |
| Wells Fargo Short |
| Calamos Global Vertible |
Wells Fargo and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wells Fargo and Calamos Global
The main advantage of trading using opposite Wells Fargo and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo 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.| Wells Fargo vs. T Rowe Price | Wells Fargo vs. Dws Government Money | Wells Fargo vs. Inverse Government Long | Wells Fargo vs. Nuveen Strategic Municipal |
| Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Innealta Capital Sector | Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Calamos Antetokounmpo Sustainable |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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