Correlation Between Valic Company and Calamos International
Can any of the company-specific risk be diversified away by investing in both Valic Company and Calamos International 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 Valic Company and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Calamos International Growth, you can compare the effects of market volatilities on Valic Company and Calamos International 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 Valic Company with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Calamos International.
Diversification Opportunities for Valic Company and Calamos International
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valic and Calamos is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Valic Company 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 Valic Company I are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Valic Company i.e., Valic Company and Calamos International go up and down completely randomly.
Pair Corralation between Valic Company and Calamos International
Assuming the 90 days horizon Valic Company is expected to generate 1.02 times less return on investment than Calamos International. In addition to that, Valic Company is 1.29 times more volatile than Calamos International Growth. It trades about 0.05 of its total potential returns per unit of risk. Calamos International Growth is currently generating about 0.06 per unit of volatility. If you would invest 1,369 in Calamos International Growth on September 14, 2024 and sell it today you would earn a total of 458.00 from holding Calamos International Growth or generate 33.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Calamos International Growth
Performance |
| Timeline |
| Valic Company I |
| Calamos International |
Valic Company and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Calamos International
The main advantage of trading using opposite Valic Company and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Valic Company vs. Mid Cap Index | Valic Company vs. Mid Cap Strategic | Valic Company vs. Valic Company I | Valic Company vs. Valic Company I |
| Calamos International vs. Lord Abbett Small | Calamos International vs. Victory Rs Partners | Calamos International vs. Palm Valley Capital | Calamos International vs. Valic Company I |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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