Correlation Between Calamos Global and Calamos Global

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

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

Diversification Opportunities for Calamos Global and Calamos Global

0.83

Correlation Coefficient

Calamos Global  Calamos Global

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 Dynamic and Calamos Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global 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 Dynamic 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 Total has no effect on the direction of Calamos Global i.e., Calamos Global and Calamos Global go up and down completely randomly.

Pair Corralation between Calamos Global and Calamos Global

Considering the 90-day investment horizon Calamos Global Dynamic is expected to generate 0.7 times more return on investment than Calamos Global. However, Calamos Global Dynamic is 1.43 times less risky than Calamos Global. It trades about 0.08 of its potential returns per unit of risk. Calamos Global Total is currently generating about 0.04 per unit of risk. If you would invest  674.00  in Calamos Global Dynamic on August 31, 2024 and sell it today you would earn a total of  27.00  from holding Calamos Global Dynamic or generate 4.01% return on investment over 90 days.

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

Calamos Global Dynamic  vs.  Calamos Global Total

Calamos Global Dynamic

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Dynamic are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable technical indicators, Calamos Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Calamos Global Total

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Total are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy technical and fundamental indicators, Calamos Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Calamos Global and Calamos Global

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

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..