Correlation Between Calamos Global and Jacob Small

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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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Calamos Global Growth  vs.  Jacob Small Cap

 Performance 
       Timeline  
Calamos Global Growth 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Jacob Small Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Jacob Small showed solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Calamos Global Growth and Jacob Small Cap 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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