Correlation Between Alpsalerian Energy and Calamos Global

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

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

Diversification Opportunities for Alpsalerian Energy and Calamos Global

0.52

Correlation Coefficient

Alpsalerian Energy  Calamos Global

Very weak diversification

The 3 months correlation between Alpsalerian and Calamos is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alpsalerian Energy Infrastruct 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 Alpsalerian Energy 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 Alpsalerian Energy Infrastructure 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 Alpsalerian Energy i.e., Alpsalerian Energy and Calamos Global go up and down completely randomly.

Pair Corralation between Alpsalerian Energy and Calamos Global

Assuming the 90 days horizon Alpsalerian Energy Infrastructure is expected to under-perform the Calamos Global. In addition to that, Alpsalerian Energy is 4.38 times more volatile than Calamos Global Growth. It trades about -0.12 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  1,119  in Calamos Global Growth on September 12, 2024 and sell it today you would earn a total of  17.00  from holding Calamos Global Growth or generate 1.52% return on investment over 90 days.

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

Alpsalerian Energy Infrastruct  vs.  Calamos Global Growth

Alpsalerian Energy

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alpsalerian Energy Infrastructure are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Alpsalerian Energy may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Calamos Global Growth

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental 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 Alpsalerian Energy and Calamos Global

The main advantage of trading using opposite Alpsalerian Energy and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpsalerian Energy 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 Alpsalerian Energy Infrastructure 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.