Correlation Between Touchstone Large and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Touchstone Large 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 Touchstone Large and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Large Cap and Calamos Global Vertible, you can compare the effects of market volatilities on Touchstone Large 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 Touchstone Large with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Large and Calamos Global.
Diversification Opportunities for Touchstone Large and Calamos Global
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Touchstone and Calamos is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Large Cap 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 Touchstone Large 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 Touchstone Large Cap 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 Touchstone Large i.e., Touchstone Large and Calamos Global go up and down completely randomly.
Pair Corralation between Touchstone Large and Calamos Global
Assuming the 90 days horizon Touchstone Large is expected to generate 1.43 times less return on investment than Calamos Global. In addition to that, Touchstone Large is 1.32 times more volatile than Calamos Global Vertible. It trades about 0.06 of its total potential returns per unit of risk. Calamos Global Vertible is currently generating about 0.11 per unit of volatility. If you would invest 1,234 in Calamos Global Vertible on October 25, 2024 and sell it today you would earn a total of 12.00 from holding Calamos Global Vertible or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Large Cap vs. Calamos Global Vertible
Performance |
| Timeline |
| Touchstone Large Cap |
| Calamos Global Vertible |
Touchstone Large and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Large and Calamos Global
The main advantage of trading using opposite Touchstone Large and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Large 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.| Touchstone Large vs. Calamos Dynamic Convertible | Touchstone Large vs. Rationalpier 88 Convertible | Touchstone Large vs. Virtus Convertible | Touchstone Large vs. Fidelity Sai Convertible |
| Calamos Global vs. T Rowe Price | Calamos Global vs. Oklahoma College Savings | Calamos Global vs. Allianzgi Diversified Income | Calamos Global vs. Davenport Small Cap |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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