Correlation Between Dreyfusstandish Global and Calamos Total

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

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

Diversification Opportunities for Dreyfusstandish Global and Calamos Total

0.85

Correlation Coefficient

Dreyfusstandish Global  Calamos Total

Very poor diversification

The 3 months correlation between Dreyfusstandish and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfusstandish Global Fixed and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return and Dreyfusstandish 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 Dreyfusstandish Global Fixed are associated (or correlated) with Calamos Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Dreyfusstandish Global i.e., Dreyfusstandish Global and Calamos Total go up and down completely randomly.

Pair Corralation between Dreyfusstandish Global and Calamos Total

Assuming the 90 days horizon Dreyfusstandish Global Fixed is expected to generate 0.54 times more return on investment than Calamos Total. However, Dreyfusstandish Global Fixed is 1.85 times less risky than Calamos Total. It trades about 0.46 of its potential returns per unit of risk. Calamos Total Return is currently generating about 0.06 per unit of risk. If you would invest  1,958  in Dreyfusstandish Global Fixed on September 15, 2024 and sell it today you would earn a total of  28.00  from holding Dreyfusstandish Global Fixed or generate 1.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.45%
Values	Daily Returns

Dreyfusstandish Global Fixed  vs.  Calamos Total Return

Dreyfusstandish Global

Risk-Adjusted Performance

0 of 100

Very Weak

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

Calamos Total Return

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Dreyfusstandish Global and Calamos Total

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

The idea behind Dreyfusstandish Global Fixed and Calamos Total Return 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.