Correlation Between Schwab Target and Calamos International
Can any of the company-specific risk be diversified away by investing in both Schwab Target 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 Schwab Target and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schwab Target 2020 and Calamos International Growth, you can compare the effects of market volatilities on Schwab Target 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 Schwab Target with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schwab Target and Calamos International.
Diversification Opportunities for Schwab Target and Calamos International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Schwab and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Schwab Target 2020 and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Schwab Target 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 Schwab Target 2020 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 Schwab Target i.e., Schwab Target and Calamos International go up and down completely randomly.
Pair Corralation between Schwab Target and Calamos International
Assuming the 90 days horizon Schwab Target is expected to generate 1.02 times less return on investment than Calamos International. But when comparing it to its historical volatility, Schwab Target 2020 is 3.3 times less risky than Calamos International. It trades about 0.15 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,374 in Calamos International Growth on August 19, 2025 and sell it today you would earn a total of 66.00 from holding Calamos International Growth or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schwab Target 2020 vs. Calamos International Growth
Performance |
| Timeline |
| Schwab Target 2020 |
| Calamos International |
Schwab Target and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schwab Target and Calamos International
The main advantage of trading using opposite Schwab Target and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schwab Target 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.| Schwab Target vs. Schwab Target 2065 | Schwab Target vs. Small Cap Growth | Schwab Target vs. Prudential Jennison Equity | Schwab Target vs. Prudential Jennison Equity |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |