Correlation Between Timothy Plan and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Timothy Plan 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 Timothy Plan and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timothy Plan High and Calamos Global Vertible, you can compare the effects of market volatilities on Timothy Plan 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 Timothy Plan with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timothy Plan and Calamos Global.
Diversification Opportunities for Timothy Plan and Calamos Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Timothy and Calamos is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Timothy Plan High 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 Timothy Plan 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 Timothy Plan High 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 Timothy Plan i.e., Timothy Plan and Calamos Global go up and down completely randomly.
Pair Corralation between Timothy Plan and Calamos Global
Assuming the 90 days horizon Timothy Plan is expected to generate 1.15 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Timothy Plan High is 1.98 times less risky than Calamos Global. It trades about 0.16 of its potential returns per unit of risk. Calamos Global Vertible is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,037 in Calamos Global Vertible on November 2, 2024 and sell it today you would earn a total of 232.00 from holding Calamos Global Vertible or generate 22.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Timothy Plan High vs. Calamos Global Vertible
Performance |
| Timeline |
| Timothy Plan High |
| Calamos Global Vertible |
Timothy Plan and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timothy Plan and Calamos Global
The main advantage of trading using opposite Timothy Plan and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timothy Plan 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.| Timothy Plan vs. Smallcap Fund Fka | Timothy Plan vs. Praxis Small Cap | Timothy Plan vs. Lebenthal Lisanti Small | Timothy Plan vs. Tax Managed Mid Small |
| Calamos Global vs. Angel Oak Financial | Calamos Global vs. Morningstar Defensive Bond | Calamos Global vs. Rbc Bluebay Emerging | Calamos Global vs. Ab Bond Inflation |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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