Correlation Between Calvert Developed and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Calvert Developed 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 Calvert Developed and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Developed Market and Calamos Growth Fund, you can compare the effects of market volatilities on Calvert Developed 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 Calvert Developed with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Developed and Calamos Growth.
Diversification Opportunities for Calvert Developed and Calamos Growth
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calvert and Calamos is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Calvert Developed 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 Calvert Developed Market 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 Calvert Developed i.e., Calvert Developed and Calamos Growth go up and down completely randomly.
Pair Corralation between Calvert Developed and Calamos Growth
Assuming the 90 days horizon Calvert Developed is expected to generate 1.9 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Calvert Developed Market is 1.69 times less risky than Calamos Growth. It trades about 0.18 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,723 in Calamos Growth Fund on September 14, 2024 and sell it today you would earn a total of 185.00 from holding Calamos Growth Fund or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Developed Market vs. Calamos Growth Fund
Performance |
| Timeline |
| Calvert Developed Market |
| Calamos Growth |
Calvert Developed and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Developed and Calamos Growth
The main advantage of trading using opposite Calvert Developed and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Developed 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.| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
| Calamos Growth vs. Ashmore Emerging Markets | Calamos Growth vs. Barings Emerging Markets | Calamos Growth vs. Pnc Emerging Markets | Calamos Growth vs. Calvert Developed Market |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |