Correlation Between Transamerica Emerging and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Transamerica Emerging 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 Transamerica Emerging and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Emerging Markets and Calamos Global Sustainable, you can compare the effects of market volatilities on Transamerica Emerging 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 Transamerica Emerging with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Emerging and Calamos Global.
Diversification Opportunities for Transamerica Emerging and Calamos Global
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transamerica and Calamos is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Emerging Markets and Calamos Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Susta and Transamerica Emerging 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 Transamerica Emerging Markets 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 Susta has no effect on the direction of Transamerica Emerging i.e., Transamerica Emerging and Calamos Global go up and down completely randomly.
Pair Corralation between Transamerica Emerging and Calamos Global
Assuming the 90 days horizon Transamerica Emerging is expected to generate 1.56 times less return on investment than Calamos Global. In addition to that, Transamerica Emerging is 1.27 times more volatile than Calamos Global Sustainable. It trades about 0.03 of its total potential returns per unit of risk. Calamos Global Sustainable is currently generating about 0.05 per unit of volatility. If you would invest 789.00 in Calamos Global Sustainable on September 19, 2024 and sell it today you would earn a total of 29.00 from holding Calamos Global Sustainable or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 20.81% |
| Values | Daily Returns |
Transamerica Emerging Markets vs. Calamos Global Sustainable
Performance |
| Timeline |
| Transamerica Emerging |
| Calamos Global Susta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Transamerica Emerging and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Emerging and Calamos Global
The main advantage of trading using opposite Transamerica Emerging and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Emerging 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.The idea behind Transamerica Emerging Markets and Calamos Global Sustainable pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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