Correlation Between Calamos Global and Ab Value
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Ab Value 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 Calamos Global and Ab Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Equity and Ab Value Fund, you can compare the effects of market volatilities on Calamos Global and Ab Value 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 Calamos Global with a short position of Ab Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Ab Value.
Diversification Opportunities for Calamos Global and Ab Value
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and ABVCX is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Ab Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Value Fund and Calamos Global 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 Calamos Global Equity are associated (or correlated) with Ab Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Value Fund has no effect on the direction of Calamos Global i.e., Calamos Global and Ab Value go up and down completely randomly.
Pair Corralation between Calamos Global and Ab Value
Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.5 times more return on investment than Ab Value. However, Calamos Global Equity is 2.02 times less risky than Ab Value. It trades about 0.01 of its potential returns per unit of risk. Ab Value Fund is currently generating about -0.16 per unit of risk. If you would invest 1,923 in Calamos Global Equity on September 22, 2024 and sell it today you would earn a total of 6.00 from holding Calamos Global Equity or generate 0.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Global Equity vs. Ab Value Fund
Performance |
Timeline |
Calamos Global Equity |
Ab Value Fund |
Calamos Global and Ab Value Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Global and Ab Value
The main advantage of trading using opposite Calamos Global and Ab Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Ab Value 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 Ab Value will offset losses from the drop in Ab Value's long position.Calamos Global vs. T Rowe Price | Calamos Global vs. Versatile Bond Portfolio | Calamos Global vs. Ambrus Core Bond | Calamos Global vs. T Rowe Price |
Ab Value vs. Ab Select Equity | Ab Value vs. Calamos Global Equity | Ab Value vs. Balanced Fund Retail | Ab Value vs. Locorr Dynamic Equity |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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