Correlation Between Ivy International and Calamos Global

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

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

Diversification Opportunities for Ivy International and Calamos Global

-0.42

Correlation Coefficient

Ivy International  Calamos Global

Very good diversification

The 3 months correlation between Ivy and Calamos is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ivy International E and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Ivy 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 Ivy International E are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Ivy International i.e., Ivy International and Calamos Global go up and down completely randomly.

Pair Corralation between Ivy International and Calamos Global

Assuming the 90 days horizon Ivy International E is expected to generate 0.71 times more return on investment than Calamos Global. However, Ivy International E is 1.4 times less risky than Calamos Global. It trades about 0.18 of its potential returns per unit of risk. Calamos Global Equity is currently generating about -0.06 per unit of risk. If you would invest  2,039  in Ivy International E on December 28, 2024 and sell it today you would earn a total of  217.00  from holding Ivy International E or generate 10.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Ivy International E  vs.  Calamos Global Equity

Ivy International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ivy International E are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ivy International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Calamos Global Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Global Equity 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.

Pair Trading with Ivy International and Calamos Global

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

The idea behind Ivy International E and Calamos Global Equity 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.