Correlation Between Calamos Opportunistic and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Calamos Opportunistic and Calamos Growth 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 Opportunistic and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Opportunistic Value and Calamos Growth Income, you can compare the effects of market volatilities on Calamos Opportunistic and Calamos Growth 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 Opportunistic with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Opportunistic and Calamos Growth.
Diversification Opportunities for Calamos Opportunistic and Calamos Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calamos and Calamos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Calamos Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth Income and Calamos Opportunistic 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 Opportunistic Value are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth Income has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Calamos Growth go up and down completely randomly.
Pair Corralation between Calamos Opportunistic and Calamos Growth
Assuming the 90 days horizon Calamos Opportunistic is expected to generate 1.01 times less return on investment than Calamos Growth. In addition to that, Calamos Opportunistic is 1.2 times more volatile than Calamos Growth Income. It trades about 0.12 of its total potential returns per unit of risk. Calamos Growth Income is currently generating about 0.15 per unit of volatility. If you would invest 4,914 in Calamos Growth Income on August 25, 2024 and sell it today you would earn a total of 204.00 from holding Calamos Growth Income or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Opportunistic Value vs. Calamos Growth Income
Performance |
| Timeline |
| Calamos Opportunistic |
| Calamos Growth Income |
Calamos Opportunistic and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Opportunistic and Calamos Growth
The main advantage of trading using opposite Calamos Opportunistic and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Opportunistic position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.The idea behind Calamos Opportunistic Value and Calamos Growth Income 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.
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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