Correlation Between Calamos Evolving and Calamos High
Can any of the company-specific risk be diversified away by investing in both Calamos Evolving and Calamos High 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 Evolving and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Evolving World and Calamos High Income, you can compare the effects of market volatilities on Calamos Evolving and Calamos High 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 Evolving with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Evolving and Calamos High.
Diversification Opportunities for Calamos Evolving and Calamos High
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Evolving World and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Calamos Evolving 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 Evolving World are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Calamos Evolving i.e., Calamos Evolving and Calamos High go up and down completely randomly.
Pair Corralation between Calamos Evolving and Calamos High
Assuming the 90 days horizon Calamos Evolving World is expected to under-perform the Calamos High. In addition to that, Calamos Evolving is 7.72 times more volatile than Calamos High Income. It trades about -0.15 of its total potential returns per unit of risk. Calamos High Income is currently generating about 0.27 per unit of volatility. If you would invest 781.00 in Calamos High Income on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Calamos High Income or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Evolving World vs. Calamos High Income
Performance |
| Timeline |
| Calamos Evolving World |
| Calamos High Income |
Calamos Evolving and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Evolving and Calamos High
The main advantage of trading using opposite Calamos Evolving and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Evolving position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Calamos Evolving vs. Calamos International Growth | Calamos Evolving vs. Calamos Growth Income | Calamos Evolving vs. Calamos Global Growth | Calamos Evolving vs. Calamos Vertible Fund |
| Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Antetokounmpo Sustainable | Calamos High vs. Calamos Opportunistic Value |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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