Correlation Between Calamos Evolving and Calamos Total
Can any of the company-specific risk be diversified away by investing in both Calamos Evolving and Calamos Total 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 Total 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 Total Return, you can compare the effects of market volatilities on Calamos Evolving and Calamos Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Evolving and Calamos Total.
Diversification Opportunities for Calamos Evolving and Calamos Total
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Calamos is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Evolving World and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Calamos Evolving i.e., Calamos Evolving and Calamos Total go up and down completely randomly.
Pair Corralation between Calamos Evolving and Calamos Total
Assuming the 90 days horizon Calamos Evolving World is expected to generate 2.88 times more return on investment than Calamos Total. However, Calamos Evolving is 2.88 times more volatile than Calamos Total Return. It trades about 0.08 of its potential returns per unit of risk. Calamos Total Return is currently generating about 0.07 per unit of risk. If you would invest 1,618 in Calamos Evolving World on August 25, 2024 and sell it today you would earn a total of 356.00 from holding Calamos Evolving World or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Evolving World vs. Calamos Total Return
Performance |
| Timeline |
| Calamos Evolving World |
| Calamos Total Return |
Calamos Evolving and Calamos Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Evolving and Calamos Total
The main advantage of trading using opposite Calamos Evolving and Calamos Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Evolving position performs unexpectedly, Calamos Total 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 Total will offset losses from the drop in Calamos Total's long position.The idea behind Calamos Evolving World and Calamos Total Return pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total vs. Calamos Antetokounmpo Sustainable | Calamos Total 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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