Correlation Between Metropolitan West and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Metropolitan West 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 Metropolitan West and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metropolitan West Porate and Calamos Global Equity, you can compare the effects of market volatilities on Metropolitan West 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 Metropolitan West with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan West and Calamos Global.
Diversification Opportunities for Metropolitan West and Calamos Global
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Metropolitan and Calamos is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan West Porate 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 Metropolitan West 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 Metropolitan West Porate 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 Metropolitan West i.e., Metropolitan West and Calamos Global go up and down completely randomly.
Pair Corralation between Metropolitan West and Calamos Global
If you would invest 1,901 in Calamos Global Equity on September 23, 2024 and sell it today you would earn a total of 28.00 from holding Calamos Global Equity or generate 1.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Metropolitan West Porate vs. Calamos Global Equity
Performance |
Timeline |
Metropolitan West Porate |
Calamos Global Equity |
Metropolitan West and Calamos Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metropolitan West and Calamos Global
The main advantage of trading using opposite Metropolitan West and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metropolitan West 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.Metropolitan West vs. Advent Claymore Convertible | Metropolitan West vs. Rationalpier 88 Convertible | Metropolitan West vs. Calamos Dynamic Convertible | Metropolitan West vs. Absolute Convertible Arbitrage |
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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 Stocks Directory module to find actively traded stocks across global markets.
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