Correlation Between Payden Government and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Payden Government 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 Government 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 Government Fund and Calamos Global Vertible, you can compare the effects of market volatilities on Payden Government 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 Government with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Government and Calamos Global.
Diversification Opportunities for Payden Government and Calamos Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Payden and Calamos is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Payden Government Fund and Calamos Global Vertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Vertible and Payden Government 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 Government Fund 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 Vertible has no effect on the direction of Payden Government i.e., Payden Government and Calamos Global go up and down completely randomly.
Pair Corralation between Payden Government and Calamos Global
Assuming the 90 days horizon Payden Government is expected to generate 2.69 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Payden Government Fund is 2.84 times less risky than Calamos Global. It trades about 0.23 of its potential returns per unit of risk. Calamos Global Vertible is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,309 in Calamos Global Vertible on June 11, 2025 and sell it today you would earn a total of 80.00 from holding Calamos Global Vertible or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payden Government Fund vs. Calamos Global Vertible
Performance |
| Timeline |
| Payden Government |
| Calamos Global Vertible |
Payden Government and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Government and Calamos Global
The main advantage of trading using opposite Payden Government and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Government 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 Government vs. Lord Abbett Convertible | Payden Government vs. Absolute Convertible Arbitrage | Payden Government vs. Columbia Convertible Securities | Payden Government vs. Fidelity Sai Convertible |
| Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Innealta Capital Sector | Calamos Global vs. Calamos Antetokounmpo Sustainable | Calamos Global vs. Calamos Antetokounmpo Sustainable |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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