Correlation Between Absolute Convertible and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Absolute Convertible 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 Absolute Convertible and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absolute Convertible Arbitrage and Calamos Growth Fund, you can compare the effects of market volatilities on Absolute Convertible 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 Absolute Convertible with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absolute Convertible and Calamos Growth.
Diversification Opportunities for Absolute Convertible and Calamos Growth
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Absolute and Calamos is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Absolute Convertible Arbitrage and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Absolute Convertible 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 Absolute Convertible Arbitrage 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 Absolute Convertible i.e., Absolute Convertible and Calamos Growth go up and down completely randomly.
Pair Corralation between Absolute Convertible and Calamos Growth
Assuming the 90 days horizon Absolute Convertible is expected to generate 6.65 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Absolute Convertible Arbitrage is 9.03 times less risky than Calamos Growth. It trades about 0.14 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,703 in Calamos Growth Fund on October 14, 2024 and sell it today you would earn a total of 1,788 from holding Calamos Growth Fund or generate 66.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Absolute Convertible Arbitrage vs. Calamos Growth Fund
Performance |
| Timeline |
| Absolute Convertible |
| Calamos Growth |
Absolute Convertible and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absolute Convertible and Calamos Growth
The main advantage of trading using opposite Absolute Convertible and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absolute Convertible 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.The idea behind Absolute Convertible Arbitrage and Calamos Growth Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Calamos Growth vs. Gabelli Convertible And | Calamos Growth vs. Fidelity Vertible Securities | Calamos Growth vs. Absolute Convertible Arbitrage | Calamos Growth vs. Virtus Convertible |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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