Correlation Between Payden Global and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Payden 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 Payden 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 Payden Global Fixed and Calamos Global Equity, you can compare the effects of market volatilities on Payden 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 Payden Global with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Global and Calamos Global.
Diversification Opportunities for Payden Global and Calamos Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Payden and Calamos is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Payden Global Fixed 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 Payden 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 Payden Global Fixed 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 Payden Global i.e., Payden Global and Calamos Global go up and down completely randomly.
Pair Corralation between Payden Global and Calamos Global
Assuming the 90 days horizon Payden Global Fixed is expected to under-perform the Calamos Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Payden Global Fixed is 3.82 times less risky than Calamos Global. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Calamos Global Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. 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 | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Payden Global Fixed vs. Calamos Global Equity
Performance |
Timeline |
Payden Global Fixed |
Calamos Global Equity |
Payden Global and Calamos Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Payden Global and Calamos Global
The main advantage of trading using opposite Payden Global and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden 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.Payden Global vs. Calamos Global Equity | Payden Global vs. Qs Global Equity | Payden Global vs. Artisan Select Equity | Payden Global vs. Us Strategic Equity |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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