Correlation Between Calamos Global and Manning Napier

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

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

Diversification Opportunities for Calamos Global and Manning Napier

0.63

Correlation Coefficient

Calamos Global  Manning Napier

Poor diversification

The 3 months correlation between Calamos and Manning is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Manning Napier Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Disci and Calamos 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 Calamos Global Equity are associated (or correlated) with Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Disci has no effect on the direction of Calamos Global i.e., Calamos Global and Manning Napier go up and down completely randomly.

Pair Corralation between Calamos Global and Manning Napier

Assuming the 90 days horizon Calamos Global Equity is expected to generate 0.6 times more return on investment than Manning Napier. However, Calamos Global Equity is 1.66 times less risky than Manning Napier. It trades about 0.12 of its potential returns per unit of risk. Manning Napier Disciplined is currently generating about -0.06 per unit of risk. If you would invest  1,873  in Calamos Global Equity on September 15, 2024 and sell it today you would earn a total of  110.00  from holding Calamos Global Equity or generate 5.87% return on investment over 90 days.

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

Calamos Global Equity  vs.  Manning Napier Disciplined

Calamos Global Equity

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. 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.

Manning Napier Disci

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Calamos Global and Manning Napier

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

The idea behind Calamos Global Equity and Manning Napier Disciplined 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.