Correlation Between Calamos Global and Allspring Utilities

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

Diversification Opportunities for Calamos Global and Allspring Utilities

0.41

Correlation Coefficient

Calamos Global  Allspring Utilities

Very weak diversification

The 3 months correlation between Calamos and Allspring is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Dynamic and Allspring Utilities And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allspring Utilities And 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 Allspring Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allspring Utilities And has no effect on the direction of Calamos Global i.e., Calamos Global and Allspring Utilities go up and down completely randomly.

Pair Corralation between Calamos Global and Allspring Utilities

Considering the 90-day investment horizon Calamos Global Dynamic is expected to generate 1.21 times more return on investment than Allspring Utilities. However, Calamos Global is 1.21 times more volatile than Allspring Utilities And. It trades about -0.08 of its potential returns per unit of risk. Allspring Utilities And is currently generating about -0.27 per unit of risk. If you would invest  696.00  in Calamos Global Dynamic on September 24, 2024 and sell it today you would lose (9.00) from holding Calamos Global Dynamic or give up 1.29% of portfolio value over 90 days.

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

Calamos Global Dynamic  vs.  Allspring Utilities And

Calamos Global Dynamic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Global Dynamic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable technical indicators, Calamos Global is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Allspring Utilities And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allspring Utilities And has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong basic indicators, Allspring Utilities is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Calamos Global and Allspring Utilities

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

The idea behind Calamos Global Dynamic and Allspring Utilities And 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..