Correlation Between Visa and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Calamos Global Growth, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Calamos Global.
Diversification Opportunities for Visa and Calamos Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Visa and Calamos is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth and Visa 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 Visa Class A 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 Growth has no effect on the direction of Visa i.e., Visa and Calamos Global go up and down completely randomly.
Pair Corralation between Visa and Calamos Global
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.3 times more return on investment than Calamos Global. However, Visa is 2.3 times more volatile than Calamos Global Growth. It trades about 0.33 of its potential returns per unit of risk. Calamos Global Growth is currently generating about 0.09 per unit of risk. If you would invest 28,365 in Visa Class A on August 29, 2024 and sell it today you would earn a total of 2,817 from holding Visa Class A or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Calamos Global Growth
Performance |
| Timeline |
| Visa Class A |
| Calamos Global Growth |
Visa and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Calamos Global
The main advantage of trading using opposite Visa and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Calamos Global vs. Calamos Growth Income | Calamos Global vs. Calamos Opportunistic Value | Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Market Neutral |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |