Correlation Between Calamos Global and Jacob Small
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Jacob Small 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 Jacob Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Growth and Jacob Small Cap, you can compare the effects of market volatilities on Calamos Global and Jacob Small 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 Jacob Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Jacob Small.
Diversification Opportunities for Calamos Global and Jacob Small
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Jacob is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Growth and Jacob Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Small Cap 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 Growth are associated (or correlated) with Jacob Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Small Cap has no effect on the direction of Calamos Global i.e., Calamos Global and Jacob Small go up and down completely randomly.
Pair Corralation between Calamos Global and Jacob Small
Assuming the 90 days horizon Calamos Global Growth is expected to under-perform the Jacob Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calamos Global Growth is 2.32 times less risky than Jacob Small. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Jacob Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,942 in Jacob Small Cap on October 25, 2024 and sell it today you would earn a total of 264.00 from holding Jacob Small Cap or generate 13.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Global Growth vs. Jacob Small Cap
Performance |
Timeline |
Calamos Global Growth |
Jacob Small Cap |
Calamos Global and Jacob Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Global and Jacob Small
The main advantage of trading using opposite Calamos Global and Jacob Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Jacob Small 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 Jacob Small will offset losses from the drop in Jacob Small's long position.Calamos Global vs. Calamos Growth Income | Calamos Global vs. Calamos Opportunistic Value | Calamos Global vs. Calamos International Growth | Calamos Global vs. Calamos Market Neutral |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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