Correlation Between Calamos Global and Saat Servative

Can any of the company-specific risk be diversified away by investing in both Calamos Global and Saat Servative 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 Saat Servative 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 Saat Servative Strategy, you can compare the effects of market volatilities on Calamos Global and Saat Servative 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 Saat Servative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Saat Servative.

Diversification Opportunities for Calamos Global and Saat Servative

0.84

Correlation Coefficient

Calamos Global  Saat Servative

Very poor diversification

The 3 months correlation between Calamos and Saat is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Saat Servative Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Servative Strategy 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 Saat Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Servative Strategy has no effect on the direction of Calamos Global i.e., Calamos Global and Saat Servative go up and down completely randomly.

Pair Corralation between Calamos Global and Saat Servative

Assuming the 90 days horizon Calamos Global Equity is expected to under-perform the Saat Servative. In addition to that, Calamos Global is 1.71 times more volatile than Saat Servative Strategy. It trades about -0.32 of its total potential returns per unit of risk. Saat Servative Strategy is currently generating about -0.33 per unit of volatility. If you would invest  1,285  in Saat Servative Strategy on October 7, 2024 and sell it today you would lose (88.00) from holding Saat Servative Strategy or give up 6.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Calamos Global Equity  vs.  Saat Servative Strategy

Calamos Global Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Calamos Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Saat Servative Strategy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saat Servative Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Saat Servative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Global and Saat Servative

The main advantage of trading using opposite Calamos Global and Saat Servative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Saat Servative 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 Saat Servative will offset losses from the drop in Saat Servative's long position.

The idea behind Calamos Global Equity and Saat Servative Strategy 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.