Correlation Between Virtus Ceredex and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Virtus Ceredex 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 Virtus Ceredex and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Ceredex Small Cap and Calamos Global Equity, you can compare the effects of market volatilities on Virtus Ceredex 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 Virtus Ceredex with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Ceredex and Calamos Global.
Diversification Opportunities for Virtus Ceredex and Calamos Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and Calamos is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Ceredex Small Cap and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Virtus Ceredex 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 Virtus Ceredex Small 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 Equity has no effect on the direction of Virtus Ceredex i.e., Virtus Ceredex and Calamos Global go up and down completely randomly.
Pair Corralation between Virtus Ceredex and Calamos Global
Assuming the 90 days horizon Virtus Ceredex Small Cap is expected to generate 2.13 times more return on investment than Calamos Global. However, Virtus Ceredex is 2.13 times more volatile than Calamos Global Equity. It trades about 0.21 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.39 per unit of risk. If you would invest 838.00 in Virtus Ceredex Small Cap on September 5, 2024 and sell it today you would earn a total of 62.00 from holding Virtus Ceredex Small Cap or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Virtus Ceredex Small Cap vs. Calamos Global Equity
Performance |
| Timeline |
| Virtus Ceredex Small |
| Calamos Global Equity |
Virtus Ceredex and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Ceredex and Calamos Global
The main advantage of trading using opposite Virtus Ceredex and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Ceredex 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.| Virtus Ceredex vs. Calamos Global Equity | Virtus Ceredex vs. Ms Global Fixed | Virtus Ceredex vs. The Fixed Income | Virtus Ceredex vs. Us Strategic Equity |
| Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Putnam Convertible Incm Gwth | Calamos Global vs. Rationalpier 88 Convertible | Calamos Global vs. Absolute Convertible Arbitrage |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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