Correlation Between Wells Fargo and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Wells Fargo 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 Wells Fargo and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wells Fargo Advantage and Calamos Global Equity, you can compare the effects of market volatilities on Wells Fargo 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 Wells Fargo with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wells Fargo and Calamos Global.
Diversification Opportunities for Wells Fargo and Calamos Global
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wells and Calamos is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Wells Fargo Advantage 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 Wells Fargo 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 Wells Fargo Advantage 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 Wells Fargo i.e., Wells Fargo and Calamos Global go up and down completely randomly.
Pair Corralation between Wells Fargo and Calamos Global
Assuming the 90 days horizon Wells Fargo Advantage is expected to generate 0.38 times more return on investment than Calamos Global. However, Wells Fargo Advantage is 2.63 times less risky than Calamos Global. It trades about 0.06 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.01 per unit of risk. If you would invest 999.00 in Wells Fargo Advantage on December 2, 2024 and sell it today you would earn a total of 70.00 from holding Wells Fargo Advantage or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wells Fargo Advantage vs. Calamos Global Equity
Performance |
| Timeline |
| Wells Fargo Advantage |
| Calamos Global Equity |
Wells Fargo and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wells Fargo and Calamos Global
The main advantage of trading using opposite Wells Fargo and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wells Fargo 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.| Wells Fargo vs. Nuveen Small Cap | Wells Fargo vs. Touchstone Small Cap | Wells Fargo vs. Nt International Small Mid | Wells Fargo vs. Legg Mason Partners |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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