Correlation Between Calamos Growth and First Eagle
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and First Eagle 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 Growth and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Growth Fund and First Eagle Fund, you can compare the effects of market volatilities on Calamos Growth and First Eagle 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 Growth with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and First Eagle.
Diversification Opportunities for Calamos Growth and First Eagle
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and First is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and Calamos Growth 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 Growth Fund are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Fund has no effect on the direction of Calamos Growth i.e., Calamos Growth and First Eagle go up and down completely randomly.
Pair Corralation between Calamos Growth and First Eagle
Assuming the 90 days horizon Calamos Growth is expected to generate 1.15 times less return on investment than First Eagle. In addition to that, Calamos Growth is 1.84 times more volatile than First Eagle Fund. It trades about 0.1 of its total potential returns per unit of risk. First Eagle Fund is currently generating about 0.21 per unit of volatility. If you would invest 1,439 in First Eagle Fund on November 9, 2024 and sell it today you would earn a total of 42.00 from holding First Eagle Fund or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Fund vs. First Eagle Fund
Performance |
| Timeline |
| Calamos Growth |
| First Eagle Fund |
Calamos Growth and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and First Eagle
The main advantage of trading using opposite Calamos Growth and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Calamos Growth vs. Ave Maria Rising | Calamos Growth vs. SCOR PK | Calamos Growth vs. HUMANA INC | Calamos Growth vs. Morningstar Unconstrained Allocation |
| First Eagle vs. Balanced Allocation Fund | First Eagle vs. Jpmorgan Global Allocation | First Eagle vs. Growth Allocation Fund | First Eagle vs. Enhanced Large Pany |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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