Correlation Between Calamos Growth and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Sterling Capital 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 Sterling Capital 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 Sterling Capital Special, you can compare the effects of market volatilities on Calamos Growth and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Sterling Capital.
Diversification Opportunities for Calamos Growth and Sterling Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Sterling is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Sterling Capital Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Special 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Special has no effect on the direction of Calamos Growth i.e., Calamos Growth and Sterling Capital go up and down completely randomly.
Pair Corralation between Calamos Growth and Sterling Capital
Assuming the 90 days horizon Calamos Growth Fund is expected to generate 0.84 times more return on investment than Sterling Capital. However, Calamos Growth Fund is 1.18 times less risky than Sterling Capital. It trades about 0.1 of its potential returns per unit of risk. Sterling Capital Special is currently generating about 0.02 per unit of risk. If you would invest 2,794 in Calamos Growth Fund on October 9, 2024 and sell it today you would earn a total of 1,715 from holding Calamos Growth Fund or generate 61.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Fund vs. Sterling Capital Special
Performance |
| Timeline |
| Calamos Growth |
| Sterling Capital Special |
Calamos Growth and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Sterling Capital
The main advantage of trading using opposite Calamos Growth and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Calamos Growth vs. Calamos Antetokounmpo Sustainable | Calamos Growth vs. Innealta Capital Sector | Calamos Growth vs. Calamos Antetokounmpo Sustainable | Calamos Growth vs. Calamos Antetokounmpo Sustainable |
| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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