Correlation Between Calamos Global and Calamos Convertible

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

By analyzing existing cross correlation between Calamos Global Total and Calamos Convertible Opportunities, you can compare the effects of market volatilities on Calamos Global and Calamos Convertible 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 Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Calamos Convertible.

Diversification Opportunities for Calamos Global and Calamos Convertible

0.83

Correlation Coefficient

Calamos Global  Calamos Convertible

Very poor diversification

The 3 months correlation between Calamos and Calamos is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Total and Calamos Convertible Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible 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 Total are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Calamos Global i.e., Calamos Global and Calamos Convertible go up and down completely randomly.

Pair Corralation between Calamos Global and Calamos Convertible

Considering the 90-day investment horizon Calamos Global Total is expected to generate 0.93 times more return on investment than Calamos Convertible. However, Calamos Global Total is 1.08 times less risky than Calamos Convertible. It trades about -0.13 of its potential returns per unit of risk. Calamos Convertible Opportunities is currently generating about -0.31 per unit of risk. If you would invest  1,119  in Calamos Global Total on December 29, 2024 and sell it today you would lose (84.00) from holding Calamos Global Total or give up 7.51% of portfolio value over 90 days.

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

Calamos Global Total  vs.  Calamos Convertible Opportunit

Calamos Global Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Global Total has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the fund investors.

Calamos Convertible

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Convertible Opportunities has generated negative risk-adjusted returns adding no value to fund investors. Despite unsteady performance in the last few months, the Fund's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the fund traders.

Pair Trading with Calamos Global and Calamos Convertible

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

The idea behind Calamos Global Total and Calamos Convertible Opportunities 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.