Correlation Between Wcm Focused and Calamos Global

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

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

Diversification Opportunities for Wcm Focused and Calamos Global

-0.02

Correlation Coefficient

Wcm Focused  Calamos Global

Good diversification

The 3 months correlation between Wcm and Calamos is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wcm Focused Small 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 Wcm Focused 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 Wcm Focused Small 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 Wcm Focused i.e., Wcm Focused and Calamos Global go up and down completely randomly.

Pair Corralation between Wcm Focused and Calamos Global

Assuming the 90 days horizon Wcm Focused Small is expected to under-perform the Calamos Global. In addition to that, Wcm Focused is 2.37 times more volatile than Calamos Global Equity. It trades about -0.06 of its total potential returns per unit of risk. Calamos Global Equity is currently generating about 0.14 per unit of volatility. If you would invest  1,873  in Calamos Global Equity on September 14, 2024 and sell it today you would earn a total of  125.00  from holding Calamos Global Equity or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Wcm Focused Small  vs.  Calamos Global Equity

Wcm Focused Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wcm Focused Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Calamos Global Equity

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calamos Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Wcm Focused and Calamos Global

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

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.