Correlation Between Calamos LongShort and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Calamos LongShort and Eaton Vance 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 LongShort and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos LongShort Equity and Eaton Vance Floating, you can compare the effects of market volatilities on Calamos LongShort and Eaton Vance 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 LongShort with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and Eaton Vance.
Diversification Opportunities for Calamos LongShort and Eaton Vance
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Eaton is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and Eaton Vance Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Calamos LongShort 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 LongShort Equity are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Floating has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and Eaton Vance go up and down completely randomly.
Pair Corralation between Calamos LongShort and Eaton Vance
Considering the 90-day investment horizon Calamos LongShort Equity is expected to generate 1.18 times more return on investment than Eaton Vance. However, Calamos LongShort is 1.18 times more volatile than Eaton Vance Floating. It trades about 0.08 of its potential returns per unit of risk. Eaton Vance Floating is currently generating about 0.08 per unit of risk. If you would invest 1,455 in Calamos LongShort Equity on August 30, 2024 and sell it today you would earn a total of 99.00 from holding Calamos LongShort Equity or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos LongShort Equity vs. Eaton Vance Floating
Performance |
| Timeline |
| Calamos LongShort Equity |
| Eaton Vance Floating |
Calamos LongShort and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos LongShort and Eaton Vance
The main advantage of trading using opposite Calamos LongShort and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Calamos LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
| Eaton Vance vs. ClimateRock Class A | Eaton Vance vs. CF Acquisition VII | Eaton Vance vs. DP Cap Acquisition |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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