Correlation Between Qs Global and Calamos Timpani

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

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

Diversification Opportunities for Qs Global and Calamos Timpani

0.37

Correlation Coefficient

Qs Global  Calamos Timpani

Weak diversification

The 3 months correlation between SMYIX and Calamos is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Qs Global Equity and Calamos Timpani Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Small and Qs 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 Qs Global Equity are associated (or correlated) with Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Small has no effect on the direction of Qs Global i.e., Qs Global and Calamos Timpani go up and down completely randomly.

Pair Corralation between Qs Global and Calamos Timpani

Assuming the 90 days horizon Qs Global is expected to generate 1.04 times less return on investment than Calamos Timpani. But when comparing it to its historical volatility, Qs Global Equity is 1.84 times less risky than Calamos Timpani. It trades about 0.11 of its potential returns per unit of risk. Calamos Timpani Small is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,332  in Calamos Timpani Small on December 2, 2024 and sell it today you would earn a total of  1,122  from holding Calamos Timpani Small or generate 48.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Qs Global Equity  vs.  Calamos Timpani Small

Qs Global Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qs Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Qs Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Timpani Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Timpani Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Qs Global and Calamos Timpani

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

The idea behind Qs Global Equity and Calamos Timpani Small 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.