Correlation Between Calamos Growth and American Funds
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and American Funds 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 American Funds 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 American Funds International, you can compare the effects of market volatilities on Calamos Growth and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and American Funds.
Diversification Opportunities for Calamos Growth and American Funds
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and American is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and American Funds International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Inter 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Inter has no effect on the direction of Calamos Growth i.e., Calamos Growth and American Funds go up and down completely randomly.
Pair Corralation between Calamos Growth and American Funds
Assuming the 90 days horizon Calamos Growth is expected to generate 3.86 times less return on investment than American Funds. In addition to that, Calamos Growth is 1.56 times more volatile than American Funds International. It trades about 0.04 of its total potential returns per unit of risk. American Funds International is currently generating about 0.22 per unit of volatility. If you would invest 1,639 in American Funds International on October 24, 2024 and sell it today you would earn a total of 49.00 from holding American Funds International or generate 2.99% 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. American Funds International
Performance |
| Timeline |
| Calamos Growth |
| American Funds Inter |
Calamos Growth and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and American Funds
The main advantage of trading using opposite Calamos Growth and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Calamos Growth vs. Blackrock Science Technology | Calamos Growth vs. Pgim Jennison Technology | Calamos Growth vs. Goldman Sachs Technology | Calamos Growth vs. Fidelity Advisor Technology |
| American Funds vs. Franklin Small Cap | American Funds vs. Touchstone Small Cap | American Funds vs. Qs Small Capitalization | American Funds vs. Vy Columbia Small |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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