Correlation Between Income Fund and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Income Fund 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 Income Fund and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Fund Of and Calamos Growth And, you can compare the effects of market volatilities on Income Fund 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 Income Fund with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Fund and Calamos Growth.
Diversification Opportunities for Income Fund and Calamos Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Income and Calamos is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Income Fund Of 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 Income Fund 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 Income Fund Of 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 Income Fund i.e., Income Fund and Calamos Growth go up and down completely randomly.
Pair Corralation between Income Fund and Calamos Growth
Assuming the 90 days horizon Income Fund is expected to generate 1.35 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Income Fund Of is 1.43 times less risky than Calamos Growth. It trades about 0.17 of its potential returns per unit of risk. Calamos Growth And is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,699 in Calamos Growth And on September 1, 2024 and sell it today you would earn a total of 1,208 from holding Calamos Growth And or generate 32.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Income Fund Of vs. Calamos Growth And
Performance |
| Timeline |
| Income Fund |
| Calamos Growth And |
Income Fund and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Income Fund and Calamos Growth
The main advantage of trading using opposite Income Fund and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Fund 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.| Income Fund vs. Jhancock Diversified Macro | Income Fund vs. Massmutual Premier Diversified | Income Fund vs. Harbor Diversified International | Income Fund vs. Calvert Conservative Allocation |
| Calamos Growth vs. Barings Active Short | Calamos Growth vs. Aqr Sustainable Long Short | Calamos Growth vs. Ab Select Longshort | Calamos Growth vs. Goldman Sachs Short Term |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |