Correlation Between Calamos Vertible and Europacific Growth
Can any of the company-specific risk be diversified away by investing in both Calamos Vertible and Europacific 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 Calamos Vertible and Europacific Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Vertible Fund and Europacific Growth Fund, you can compare the effects of market volatilities on Calamos Vertible and Europacific 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 Calamos Vertible with a short position of Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Vertible and Europacific Growth.
Diversification Opportunities for Calamos Vertible and Europacific Growth
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Europacific is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Vertible Fund and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth and Calamos Vertible 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 Vertible Fund are associated (or correlated) with Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of Calamos Vertible i.e., Calamos Vertible and Europacific Growth go up and down completely randomly.
Pair Corralation between Calamos Vertible and Europacific Growth
Assuming the 90 days horizon Calamos Vertible Fund is expected to generate 0.66 times more return on investment than Europacific Growth. However, Calamos Vertible Fund is 1.51 times less risky than Europacific Growth. It trades about 0.09 of its potential returns per unit of risk. Europacific Growth Fund is currently generating about -0.02 per unit of risk. If you would invest 1,720 in Calamos Vertible Fund on October 25, 2024 and sell it today you would earn a total of 179.00 from holding Calamos Vertible Fund or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Vertible Fund vs. Europacific Growth Fund
Performance |
| Timeline |
| Calamos Vertible |
| Europacific Growth |
Calamos Vertible and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Vertible and Europacific Growth
The main advantage of trading using opposite Calamos Vertible and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Vertible position performs unexpectedly, Europacific 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 Europacific Growth will offset losses from the drop in Europacific Growth's long position.| Calamos Vertible vs. Guidemark Large Cap | Calamos Vertible vs. Pnc Balanced Allocation | Calamos Vertible vs. Oppenheimer Global Allocation | Calamos Vertible vs. Dodge Cox Stock |
| Europacific Growth vs. Avantis Large Cap | Europacific Growth vs. Qs Large Cap | Europacific Growth vs. Blackrock Large Cap | Europacific Growth vs. Ab Large Cap |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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