Correlation Between Aqr Large and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Aqr Large 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 Aqr Large and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Calamos Growth Fund, you can compare the effects of market volatilities on Aqr Large 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 Aqr Large with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Calamos Growth.
Diversification Opportunities for Aqr Large and Calamos Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Aqr and Calamos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Aqr Large 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 Aqr Large Cap 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 Aqr Large i.e., Aqr Large and Calamos Growth go up and down completely randomly.
Pair Corralation between Aqr Large and Calamos Growth
Assuming the 90 days horizon Aqr Large is expected to generate 2.26 times less return on investment than Calamos Growth. In addition to that, Aqr Large is 1.09 times more volatile than Calamos Growth Fund. It trades about 0.04 of its total potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.11 per unit of volatility. If you would invest 4,348 in Calamos Growth Fund on September 2, 2024 and sell it today you would earn a total of 2,999 from holding Calamos Growth Fund or generate 68.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Large Cap vs. Calamos Growth Fund
Performance |
| Timeline |
| Aqr Large Cap |
| Calamos Growth |
Aqr Large and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Calamos Growth
The main advantage of trading using opposite Aqr Large and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large 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.| Aqr Large vs. Aqr Long Short Equity | Aqr Large vs. Old Westbury Short Term | Aqr Large vs. Federated Ultrashort Bond | Aqr Large vs. Sterling Capital Short |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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