Correlation Between Morningstar Aggressive and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Morningstar Aggressive and Calamos Growth 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 Morningstar Aggressive and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morningstar Aggressive Growth and Calamos Growth Fund, you can compare the effects of market volatilities on Morningstar Aggressive and Calamos Growth 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 Morningstar Aggressive with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morningstar Aggressive and Calamos Growth.
Diversification Opportunities for Morningstar Aggressive and Calamos Growth
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Morningstar and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Morningstar Aggressive Growth and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Morningstar Aggressive 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 Morningstar Aggressive Growth are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth has no effect on the direction of Morningstar Aggressive i.e., Morningstar Aggressive and Calamos Growth go up and down completely randomly.
Pair Corralation between Morningstar Aggressive and Calamos Growth
Assuming the 90 days horizon Morningstar Aggressive is expected to generate 2.58 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Morningstar Aggressive Growth is 1.39 times less risky than Calamos Growth. It trades about 0.06 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,549 in Calamos Growth Fund on October 11, 2024 and sell it today you would earn a total of 1,932 from holding Calamos Growth Fund or generate 75.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morningstar Aggressive Growth vs. Calamos Growth Fund
Performance |
| Timeline |
| Morningstar Aggressive |
| Calamos Growth |
Morningstar Aggressive and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morningstar Aggressive and Calamos Growth
The main advantage of trading using opposite Morningstar Aggressive and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morningstar Aggressive position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.| Morningstar Aggressive vs. Ab Government Exchange | Morningstar Aggressive vs. Payden Government Fund | Morningstar Aggressive vs. Lord Abbett Government | Morningstar Aggressive vs. Hsbc Government Money |
| Calamos Growth vs. Ab Small Cap | Calamos Growth vs. T Rowe Price | Calamos Growth vs. Rbb Fund | Calamos Growth vs. Semiconductor Ultrasector Profund |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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