Correlation Between Calamos Market and Blackrock Global
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Blackrock Global 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 Market and Blackrock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and Blackrock Global Long, you can compare the effects of market volatilities on Calamos Market and Blackrock Global 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 Market with a short position of Blackrock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Blackrock Global.
Diversification Opportunities for Calamos Market and Blackrock Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Blackrock is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Blackrock Global Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Global Long and Calamos Market 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 Market Neutral are associated (or correlated) with Blackrock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Global Long has no effect on the direction of Calamos Market i.e., Calamos Market and Blackrock Global go up and down completely randomly.
Pair Corralation between Calamos Market and Blackrock Global
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.14 times more return on investment than Blackrock Global. However, Calamos Market Neutral is 7.39 times less risky than Blackrock Global. It trades about 0.27 of its potential returns per unit of risk. Blackrock Global Long is currently generating about 0.01 per unit of risk. If you would invest 1,523 in Calamos Market Neutral on December 2, 2024 and sell it today you would earn a total of 8.00 from holding Calamos Market Neutral or generate 0.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Market Neutral vs. Blackrock Global Long
Performance |
Timeline |
Calamos Market Neutral |
Blackrock Global Long |
Calamos Market and Blackrock Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Market and Blackrock Global
The main advantage of trading using opposite Calamos Market and Blackrock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Blackrock Global 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 Blackrock Global will offset losses from the drop in Blackrock Global's long position.Calamos Market vs. The Arbitrage Fund | Calamos Market vs. The Merger Fund | Calamos Market vs. Gateway Fund Class | Calamos Market vs. Diamond Hill Long Short |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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