Correlation Between Calamos Strategic and Paradigm Micro-cap
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Paradigm Micro-cap 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 Strategic and Paradigm Micro-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Strategic Total and Paradigm Micro Cap Fund, you can compare the effects of market volatilities on Calamos Strategic and Paradigm Micro-cap 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 Strategic with a short position of Paradigm Micro-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Paradigm Micro-cap.
Diversification Opportunities for Calamos Strategic and Paradigm Micro-cap
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Paradigm is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Paradigm Micro Cap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paradigm Micro Cap and Calamos Strategic 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 Strategic Total are associated (or correlated) with Paradigm Micro-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paradigm Micro Cap has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Paradigm Micro-cap go up and down completely randomly.
Pair Corralation between Calamos Strategic and Paradigm Micro-cap
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 0.69 times more return on investment than Paradigm Micro-cap. However, Calamos Strategic Total is 1.45 times less risky than Paradigm Micro-cap. It trades about 0.12 of its potential returns per unit of risk. Paradigm Micro Cap Fund is currently generating about 0.07 per unit of risk. If you would invest 1,179 in Calamos Strategic Total on August 26, 2024 and sell it today you would earn a total of 622.00 from holding Calamos Strategic Total or generate 52.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Paradigm Micro Cap Fund
Performance |
| Timeline |
| Calamos Strategic Total |
| Paradigm Micro Cap |
Calamos Strategic and Paradigm Micro-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Paradigm Micro-cap
The main advantage of trading using opposite Calamos Strategic and Paradigm Micro-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Paradigm Micro-cap 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 Paradigm Micro-cap will offset losses from the drop in Paradigm Micro-cap's long position.| Calamos Strategic vs. Allspring Income Opportunities | Calamos Strategic vs. Allspring Global Dividend | Calamos Strategic vs. Blackstone Gso Senior | Calamos Strategic vs. John Hancock Preferred |
| Paradigm Micro-cap vs. Paradigm Select Fund | Paradigm Micro-cap vs. Needham Aggressive Growth | Paradigm Micro-cap vs. Ultramid Cap Profund Ultramid Cap | Paradigm Micro-cap vs. Towle Deep 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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