Correlation Between First American and Calamos International
Can any of the company-specific risk be diversified away by investing in both First American and Calamos International 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 First American and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Investment and Calamos International Growth, you can compare the effects of market volatilities on First American and Calamos International 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 First American with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Calamos International.
Diversification Opportunities for First American and Calamos International
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Calamos is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding First American Investment and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and First American 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 First American Investment are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of First American i.e., First American and Calamos International go up and down completely randomly.
Pair Corralation between First American and Calamos International
Assuming the 90 days horizon First American Investment is expected to under-perform the Calamos International. But the mutual fund apears to be less risky and, when comparing its historical volatility, First American Investment is 1.05 times less risky than Calamos International. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Calamos International Growth is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 2,512 in Calamos International Growth on August 16, 2025 and sell it today you would lose (52.00) from holding Calamos International Growth or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First American Investment vs. Calamos International Growth
Performance |
| Timeline |
| First American Investment |
| Calamos International |
First American and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Calamos International
The main advantage of trading using opposite First American and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| First American vs. Nuveen Small Cap | First American vs. Sa International Small | First American vs. Nuveen Nwq Small Cap | First American vs. Prospector Opportunity Fund |
| Calamos International vs. Prudential Qma International | Calamos International vs. New Alternatives Fund | Calamos International vs. Gateway Equity Call | Calamos International vs. Gateway Equity Call |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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