Correlation Between Calamos Strategic and Neuberger Berman

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

By analyzing existing cross correlation between Calamos Strategic Total and Neuberger Berman Genesis, you can compare the effects of market volatilities on Calamos Strategic and Neuberger Berman 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 Strategic with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Neuberger Berman.

Diversification Opportunities for Calamos Strategic and Neuberger Berman

0.92

Correlation Coefficient

Calamos Strategic  Neuberger Berman

Almost no diversification

The 3 months correlation between Calamos and Neuberger is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Neuberger Berman Genesis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Genesis and Calamos Strategic 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 Strategic Total are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Genesis has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Neuberger Berman go up and down completely randomly.

Pair Corralation between Calamos Strategic and Neuberger Berman

Considering the 90-day investment horizon Calamos Strategic is expected to generate 1.1 times less return on investment than Neuberger Berman. But when comparing it to its historical volatility, Calamos Strategic Total is 1.45 times less risky than Neuberger Berman. It trades about 0.22 of its potential returns per unit of risk. Neuberger Berman Genesis is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  6,575  in Neuberger Berman Genesis on September 3, 2024 and sell it today you would earn a total of  799.00  from holding Neuberger Berman Genesis or generate 12.15% return on investment over 90 days.

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

Calamos Strategic Total  vs.  Neuberger Berman Genesis

Calamos Strategic Total

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Strategic Total are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively inconsistent basic indicators, Calamos Strategic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Neuberger Berman Genesis

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Genesis are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Neuberger Berman may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Calamos Strategic and Neuberger Berman

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

The idea behind Calamos Strategic Total and Neuberger Berman Genesis 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.