Correlation Between Vanguard Windsor and Calamos Global

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

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

Diversification Opportunities for Vanguard Windsor and Calamos Global

0.83

Correlation Coefficient

Vanguard Windsor  Calamos Global

Very poor diversification

The 3 months correlation between VANGUARD and Calamos is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Windsor Fund and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth and Vanguard Windsor 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 Vanguard Windsor Fund 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 Growth has no effect on the direction of Vanguard Windsor i.e., Vanguard Windsor and Calamos Global go up and down completely randomly.

Pair Corralation between Vanguard Windsor and Calamos Global

Assuming the 90 days horizon Vanguard Windsor is expected to generate 1.41 times less return on investment than Calamos Global. In addition to that, Vanguard Windsor is 1.0 times more volatile than Calamos Global Growth. It trades about 0.11 of its total potential returns per unit of risk. Calamos Global Growth is currently generating about 0.16 per unit of volatility. If you would invest  1,069  in Calamos Global Growth on September 4, 2024 and sell it today you would earn a total of  336.00  from holding Calamos Global Growth or generate 31.43% return on investment over 90 days.

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

Vanguard Windsor Fund  vs.  Calamos Global Growth

Vanguard Windsor

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Windsor Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Vanguard Windsor may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Calamos Global Growth

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Growth are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward 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 Vanguard Windsor and Calamos Global

The main advantage of trading using opposite Vanguard Windsor and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Windsor 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 Vanguard Windsor Fund and Calamos Global Growth 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.