Correlation Between Washington Mutual and Calamos International
Can any of the company-specific risk be diversified away by investing in both Washington Mutual 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 Washington Mutual and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Calamos International Small, you can compare the effects of market volatilities on Washington Mutual 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 Washington Mutual with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Calamos International.
Diversification Opportunities for Washington Mutual and Calamos International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Washington and Calamos is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Washington Mutual 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 Washington Mutual Investors 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 Washington Mutual i.e., Washington Mutual and Calamos International go up and down completely randomly.
Pair Corralation between Washington Mutual and Calamos International
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 1.14 times more return on investment than Calamos International. However, Washington Mutual is 1.14 times more volatile than Calamos International Small. It trades about 0.06 of its potential returns per unit of risk. Calamos International Small is currently generating about 0.06 per unit of risk. If you would invest 5,036 in Washington Mutual Investors on September 13, 2024 and sell it today you would earn a total of 1,469 from holding Washington Mutual Investors or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Washington Mutual Investors vs. Calamos International Small
Performance |
| Timeline |
| Washington Mutual |
| Calamos International |
Washington Mutual and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Calamos International
The main advantage of trading using opposite Washington Mutual and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual 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.| Washington Mutual vs. Growth Fund Of | Washington Mutual vs. Europacific Growth Fund | Washington Mutual vs. Smallcap World Fund | Washington Mutual vs. Investment Of America |
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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