Correlation Between Calamos Short-term and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Eagle Small 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 Short-term and Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Short Term Bond and Eagle Small Cap, you can compare the effects of market volatilities on Calamos Short-term and Eagle Small 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 Short-term with a short position of Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Eagle Small.
Diversification Opportunities for Calamos Short-term and Eagle Small
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and EAGLE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap and Calamos Short-term 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 Short Term Bond are associated (or correlated) with Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Eagle Small go up and down completely randomly.
Pair Corralation between Calamos Short-term and Eagle Small
Assuming the 90 days horizon Calamos Short-term is expected to generate 12.9 times less return on investment than Eagle Small. But when comparing it to its historical volatility, Calamos Short Term Bond is 10.9 times less risky than Eagle Small. It trades about 0.17 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 324.00 in Eagle Small Cap on August 31, 2024 and sell it today you would earn a total of 22.00 from holding Eagle Small Cap or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. Eagle Small Cap
Performance |
| Timeline |
| Calamos Short Term |
| Eagle Small Cap |
Calamos Short-term and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Eagle Small
The main advantage of trading using opposite Calamos Short-term and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Fidelity Series Government | Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Franklin Adjustable Government |
| Eagle Small vs. Calamos Short Term Bond | Eagle Small vs. Inflation Protected Bond Fund | Eagle Small vs. T Rowe Price | Eagle Small vs. Legg Mason Partners |
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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