Correlation Between Calamos Global and Victory Incore
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Victory Incore 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 Victory Incore 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 Victory Incore Total, you can compare the effects of market volatilities on Calamos Global and Victory Incore 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 Victory Incore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Victory Incore.
Diversification Opportunities for Calamos Global and Victory Incore
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Victory is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Victory Incore Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Incore Total 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 Victory Incore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Incore Total has no effect on the direction of Calamos Global i.e., Calamos Global and Victory Incore go up and down completely randomly.
Pair Corralation between Calamos Global and Victory Incore
Assuming the 90 days horizon Calamos Global Equity is expected to generate 2.49 times more return on investment than Victory Incore. However, Calamos Global is 2.49 times more volatile than Victory Incore Total. It trades about 0.11 of its potential returns per unit of risk. Victory Incore Total is currently generating about 0.02 per unit of risk. If you would invest 1,233 in Calamos Global Equity on September 7, 2024 and sell it today you would earn a total of 777.00 from holding Calamos Global Equity or generate 63.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Global Equity vs. Victory Incore Total
Performance |
Timeline |
Calamos Global Equity |
Victory Incore Total |
Calamos Global and Victory Incore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Global and Victory Incore
The main advantage of trading using opposite Calamos Global and Victory Incore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Victory Incore 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 Victory Incore will offset losses from the drop in Victory Incore's long position.Calamos Global vs. Transamerica Large Cap | Calamos Global vs. T Rowe Price | Calamos Global vs. Touchstone Large Cap | Calamos Global vs. Dodge Cox Stock |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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