Correlation Between Payden Global and Calamos Global

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Payden Global Fixed  vs.  Calamos Global Equity

 Performance 
       Timeline  
Payden Global Fixed 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Payden Global Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Payden Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Calamos Global Equity 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
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.

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.
The idea behind Payden Global Fixed and Calamos Global Equity 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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