Correlation Between Ab Global and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global E and Calamos Global Equity, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Calamos Global.
Diversification Opportunities for Ab Global and Calamos Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GCEAX and Calamos is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global 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 Ab 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 Ab Global 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 Ab Global i.e., Ab Global and Calamos Global go up and down completely randomly.
Pair Corralation between Ab Global and Calamos Global
Assuming the 90 days horizon Ab Global E is expected to generate 0.62 times more return on investment than Calamos Global. However, Ab Global E is 1.61 times less risky than Calamos Global. It trades about -0.08 of its potential returns per unit of risk. Calamos Global Equity is currently generating about -0.16 per unit of risk. If you would invest 1,640 in Ab Global E on January 26, 2024 and sell it today you would lose (21.00) from holding Ab Global E or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global E vs. Calamos Global Equity
Performance |
| Timeline |
| Ab Global E |
| Calamos Global Equity |
Ab Global and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Calamos Global
The main advantage of trading using opposite Ab Global and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. American Funds Capital | Ab Global vs. American Funds Capital | Ab Global vs. Capital World Growth | Ab Global vs. Capital World Growth |
| Calamos Global vs. Marsico 21st Century | Calamos Global vs. Northern Small Cap | Calamos Global vs. Aberdeen Select International | Calamos Global vs. HUMANA INC |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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