Correlation Between Barings Active and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Barings Active 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 Barings Active and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Calamos Growth And, you can compare the effects of market volatilities on Barings Active 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 Barings Active with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Calamos Growth.
Diversification Opportunities for Barings Active and Calamos Growth
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Calamos Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth And and Barings Active 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 Barings Active Short 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 And has no effect on the direction of Barings Active i.e., Barings Active and Calamos Growth go up and down completely randomly.
Pair Corralation between Barings Active and Calamos Growth
Assuming the 90 days horizon Barings Active is expected to generate 2.75 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Barings Active Short is 5.25 times less risky than Calamos Growth. It trades about 0.22 of its potential returns per unit of risk. Calamos Growth And is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,295 in Calamos Growth And on September 3, 2024 and sell it today you would earn a total of 612.00 from holding Calamos Growth And or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Calamos Growth And
Performance |
| Timeline |
| Barings Active Short |
| Calamos Growth And |
Barings Active and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Calamos Growth
The main advantage of trading using opposite Barings Active and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active 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.| Barings Active vs. Blackrock Conservative Prprdptfinstttnl | Barings Active vs. Huber Capital Diversified | Barings Active vs. Delaware Limited Term Diversified | Barings Active vs. Jhancock Diversified Macro |
| Calamos Growth vs. Vanguard Small Cap Value | Calamos Growth vs. Pace Smallmedium Value | Calamos Growth vs. Mutual Of America | Calamos Growth vs. Hennessy Nerstone Mid |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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