Correlation Between Calamos Evolving and Calamos Investment
Can any of the company-specific risk be diversified away by investing in both Calamos Evolving and Calamos Investment 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 Investment 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 Investment Trust, you can compare the effects of market volatilities on Calamos Evolving and Calamos Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Evolving and Calamos Investment.
Diversification Opportunities for Calamos Evolving and Calamos Investment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Evolving World and Calamos Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Investment Trust 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Investment Trust has no effect on the direction of Calamos Evolving i.e., Calamos Evolving and Calamos Investment go up and down completely randomly.
Pair Corralation between Calamos Evolving and Calamos Investment
Assuming the 90 days horizon Calamos Evolving World is expected to generate 2.54 times more return on investment than Calamos Investment. However, Calamos Evolving is 2.54 times more volatile than Calamos Investment Trust. It trades about 0.05 of its potential returns per unit of risk. Calamos Investment Trust is currently generating about 0.02 per unit of risk. If you would invest 1,559 in Calamos Evolving World on September 12, 2024 and sell it today you would earn a total of 383.00 from holding Calamos Evolving World or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 61.13% |
| Values | Daily Returns |
Calamos Evolving World vs. Calamos Investment Trust
Performance |
| Timeline |
| Calamos Evolving World |
| Calamos Investment Trust |
Calamos Evolving and Calamos Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Evolving and Calamos Investment
The main advantage of trading using opposite Calamos Evolving and Calamos Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Evolving position performs unexpectedly, Calamos Investment 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 Investment will offset losses from the drop in Calamos Investment'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 Investment vs. Praxis Growth Index | Calamos Investment vs. T Rowe Price | Calamos Investment vs. Pace Smallmedium Growth | Calamos Investment vs. Champlain Mid 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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