Correlation Between Arbitrage Fund and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Arbitrage Fund 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 Arbitrage Fund and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Arbitrage Fund and Calamos Growth Income, you can compare the effects of market volatilities on Arbitrage Fund 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 Arbitrage Fund with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbitrage Fund and Calamos Growth.
Diversification Opportunities for Arbitrage Fund and Calamos Growth
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arbitrage and Calamos is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Arbitrage Fund and Calamos Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth Income and Arbitrage Fund 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 The Arbitrage Fund 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 Income has no effect on the direction of Arbitrage Fund i.e., Arbitrage Fund and Calamos Growth go up and down completely randomly.
Pair Corralation between Arbitrage Fund and Calamos Growth
Assuming the 90 days horizon The Arbitrage Fund is expected to under-perform the Calamos Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Arbitrage Fund is 2.6 times less risky than Calamos Growth. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Calamos Growth Income is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,988 in Calamos Growth Income on August 29, 2024 and sell it today you would earn a total of 170.00 from holding Calamos Growth Income or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Arbitrage Fund vs. Calamos Growth Income
Performance |
| Timeline |
| Arbitrage Fund |
| Calamos Growth Income |
Arbitrage Fund and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbitrage Fund and Calamos Growth
The main advantage of trading using opposite Arbitrage Fund and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbitrage Fund 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.| Arbitrage Fund vs. The Merger Fund | Arbitrage Fund vs. Calamos Market Neutral | Arbitrage Fund vs. Hussman Strategic Growth | Arbitrage Fund vs. Gateway Fund Class |
| Calamos Growth vs. Calamos Growth Fund | Calamos Growth vs. Calamos Vertible Fund | Calamos Growth vs. Calamos Global Growth | Calamos Growth vs. Calamos Market Neutral |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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