Correlation Between BlackRock Floating and Calamos Global

Can any of the company-specific risk be diversified away by investing in both BlackRock Floating 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 BlackRock Floating and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BlackRock Floating Rate and Calamos Global Dynamic, you can compare the effects of market volatilities on BlackRock Floating 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 BlackRock Floating with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Floating and Calamos Global.

Diversification Opportunities for BlackRock Floating and Calamos Global

0.26

Correlation Coefficient

BlackRock Floating  Calamos Global

Modest diversification

The 3 months correlation between BlackRock and Calamos is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Floating Rate and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic and BlackRock Floating 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 BlackRock Floating Rate 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 Dynamic has no effect on the direction of BlackRock Floating i.e., BlackRock Floating and Calamos Global go up and down completely randomly.

Pair Corralation between BlackRock Floating and Calamos Global

Considering the 90-day investment horizon BlackRock Floating Rate is expected to generate 1.22 times more return on investment than Calamos Global. However, BlackRock Floating is 1.22 times more volatile than Calamos Global Dynamic. It trades about 0.08 of its potential returns per unit of risk. Calamos Global Dynamic is currently generating about 0.0 per unit of risk. If you would invest  1,279  in BlackRock Floating Rate on September 27, 2024 and sell it today you would earn a total of  21.00  from holding BlackRock Floating Rate or generate 1.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

BlackRock Floating Rate  vs.  Calamos Global Dynamic

BlackRock Floating Rate

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Floating Rate are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, BlackRock Floating is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Calamos Global Dynamic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Global Dynamic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable technical indicators, Calamos Global is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with BlackRock Floating and Calamos Global

The main advantage of trading using opposite BlackRock Floating and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Floating 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.

The idea behind BlackRock Floating Rate and Calamos Global Dynamic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.