Correlation Between Calvert Large and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Calvert Large 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 Large 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 Large Cap and Calamos Growth Fund, you can compare the effects of market volatilities on Calvert Large 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 Large with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and Calamos Growth.
Diversification Opportunities for Calvert Large and Calamos Growth
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calvert and Calamos is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap 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 Large 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 Large Cap 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 Large i.e., Calvert Large and Calamos Growth go up and down completely randomly.
Pair Corralation between Calvert Large and Calamos Growth
Assuming the 90 days horizon Calvert Large is expected to generate 3.64 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Calvert Large Cap is 16.36 times less risky than Calamos Growth. It trades about 0.19 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,530 in Calamos Growth Fund on October 26, 2024 and sell it today you would earn a total of 131.00 from holding Calamos Growth Fund or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Large Cap vs. Calamos Growth Fund
Performance |
| Timeline |
| Calvert Large Cap |
| Calamos Growth |
Calvert Large and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Large and Calamos Growth
The main advantage of trading using opposite Calvert Large and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large 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 Large vs. Ultra Short Fixed Income | Calvert Large vs. Delaware Investments Ultrashort | Calvert Large vs. Alpine Ultra Short | Calvert Large vs. Fidelity Flex Servative |
| Calamos Growth vs. Tekla Healthcare Investors | Calamos Growth vs. Invesco Global Health | Calamos Growth vs. Health Care Ultrasector | Calamos Growth vs. Fidelity Advisor Health |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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