Correlation Between Calamos Opportunistic and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Calamos Opportunistic and Legg Mason 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 Opportunistic and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Opportunistic Value and Legg Mason Global, you can compare the effects of market volatilities on Calamos Opportunistic and Legg Mason 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 Opportunistic with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Opportunistic and Legg Mason.
Diversification Opportunities for Calamos Opportunistic and Legg Mason
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Legg is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Legg Mason Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Global and Calamos Opportunistic 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 Opportunistic Value are associated (or correlated) with Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Global has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Legg Mason go up and down completely randomly.
Pair Corralation between Calamos Opportunistic and Legg Mason
Assuming the 90 days horizon Calamos Opportunistic Value is expected to generate 3.04 times more return on investment than Legg Mason. However, Calamos Opportunistic is 3.04 times more volatile than Legg Mason Global. It trades about 0.25 of its potential returns per unit of risk. Legg Mason Global is currently generating about 0.02 per unit of risk. If you would invest 2,206 in Calamos Opportunistic Value on September 9, 2024 and sell it today you would earn a total of 267.00 from holding Calamos Opportunistic Value or generate 12.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Opportunistic Value vs. Legg Mason Global
Performance |
Timeline |
Calamos Opportunistic |
Legg Mason Global |
Calamos Opportunistic and Legg Mason Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Opportunistic and Legg Mason
The main advantage of trading using opposite Calamos Opportunistic and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Opportunistic position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason's long position.The idea behind Calamos Opportunistic Value and Legg Mason Global 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.
Legg Mason vs. Franklin Mutual Beacon | Legg Mason vs. Templeton Developing Markets | Legg Mason vs. Franklin Mutual Global | Legg Mason vs. Franklin Mutual Global |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |