Correlation Between Calamos International and William Blair

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

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

Diversification Opportunities for Calamos International and William Blair

0.48

Correlation Coefficient

Calamos International  William Blair

Very weak diversification

The 3 months correlation between Calamos and William is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Small and William Blair Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on William Blair Large and Calamos International 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 International Small are associated (or correlated) with William Blair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of William Blair Large has no effect on the direction of Calamos International i.e., Calamos International and William Blair go up and down completely randomly.

Pair Corralation between Calamos International and William Blair

Assuming the 90 days horizon Calamos International Small is expected to generate 0.78 times more return on investment than William Blair. However, Calamos International Small is 1.28 times less risky than William Blair. It trades about -0.02 of its potential returns per unit of risk. William Blair Large is currently generating about -0.12 per unit of risk. If you would invest  998.00  in Calamos International Small on December 27, 2024 and sell it today you would lose (18.00) from holding Calamos International Small or give up 1.8% of portfolio value over 90 days.

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

Calamos International Small  vs.  William Blair Large

Calamos International

Risk-Adjusted Performance

Very Weak

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

William Blair Large

Risk-Adjusted Performance

Very Weak

Over the last 90 days William Blair Large 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 strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calamos International and William Blair

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

The idea behind Calamos International Small and William Blair Large 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.