Correlation Between Alliancebernstein and Calamos Global

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

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

Diversification Opportunities for Alliancebernstein and Calamos Global

0.84

Correlation Coefficient

Alliancebernstein  Calamos Global

Very poor diversification

The 3 months correlation between Alliancebernstein and Calamos is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global Higho 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 Alliancebernstein 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 Alliancebernstein Global Highome 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 Alliancebernstein i.e., Alliancebernstein and Calamos Global go up and down completely randomly.

Pair Corralation between Alliancebernstein and Calamos Global

Assuming the 90 days horizon Alliancebernstein Global Highome is expected to generate 0.18 times more return on investment than Calamos Global. However, Alliancebernstein Global Highome is 5.44 times less risky than Calamos Global. It trades about 0.02 of its potential returns per unit of risk. Calamos Global Growth is currently generating about -0.09 per unit of risk. If you would invest  1,136  in Alliancebernstein Global Highome on October 25, 2024 and sell it today you would earn a total of  2.00  from holding Alliancebernstein Global Highome or generate 0.18% return on investment over 90 days.

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

Alliancebernstein Global Higho  vs.  Calamos Global Growth

Alliancebernstein

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alliancebernstein Global Highome are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Alliancebernstein is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Global Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Global Growth 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 Alliancebernstein and Calamos Global

The main advantage of trading using opposite Alliancebernstein and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein 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 Alliancebernstein Global Highome 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.