Correlation Between Calamos High and Calamos Evolving
Can any of the company-specific risk be diversified away by investing in both Calamos High and Calamos Evolving 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 Calamos High and Calamos Evolving into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos High Income and Calamos Evolving World, you can compare the effects of market volatilities on Calamos High and Calamos Evolving 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 Calamos High with a short position of Calamos Evolving. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos High and Calamos Evolving.
Diversification Opportunities for Calamos High and Calamos Evolving
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and CALAMOS is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calamos High Income and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World and Calamos High 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 Calamos High Income are associated (or correlated) with Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Calamos High i.e., Calamos High and Calamos Evolving go up and down completely randomly.
Pair Corralation between Calamos High and Calamos Evolving
Assuming the 90 days horizon Calamos High Income is expected to generate 0.14 times more return on investment than Calamos Evolving. However, Calamos High Income is 7.06 times less risky than Calamos Evolving. It trades about 0.36 of its potential returns per unit of risk. Calamos Evolving World is currently generating about -0.2 per unit of risk. If you would invest 781.00 in Calamos High Income on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Calamos High Income or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Calamos High Income vs. Calamos Evolving World
Performance |
| Timeline |
| Calamos High Income |
| Calamos Evolving World |
Calamos High and Calamos Evolving Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos High and Calamos Evolving
The main advantage of trading using opposite Calamos High and Calamos Evolving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos High position performs unexpectedly, Calamos Evolving 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 Evolving will offset losses from the drop in Calamos Evolving's long position.| Calamos High vs. Dreyfus Technology Growth | Calamos High vs. Allianzgi Technology Fund | Calamos High vs. Blackrock Science Technology | Calamos High vs. Technology Ultrasector Profund |
| Calamos Evolving vs. Calamos International Growth | Calamos Evolving vs. Calamos Growth Income | Calamos Evolving vs. Calamos Global Growth | Calamos Evolving vs. Calamos Vertible Fund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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