Correlation Between Calamos Growth and Rational Defensive
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Rational Defensive 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 Rational Defensive 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 Rational Defensive Growth, you can compare the effects of market volatilities on Calamos Growth and Rational Defensive 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 Rational Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Rational Defensive.
Diversification Opportunities for Calamos Growth and Rational Defensive
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Rational is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Rational Defensive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Defensive Growth 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 Rational Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Defensive Growth has no effect on the direction of Calamos Growth i.e., Calamos Growth and Rational Defensive go up and down completely randomly.
Pair Corralation between Calamos Growth and Rational Defensive
Assuming the 90 days horizon Calamos Growth Fund is expected to under-perform the Rational Defensive. In addition to that, Calamos Growth is 1.56 times more volatile than Rational Defensive Growth. It trades about -0.22 of its total potential returns per unit of risk. Rational Defensive Growth is currently generating about -0.15 per unit of volatility. If you would invest 4,127 in Rational Defensive Growth on October 9, 2024 and sell it today you would lose (133.00) from holding Rational Defensive Growth or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Fund vs. Rational Defensive Growth
Performance |
| Timeline |
| Calamos Growth |
| Rational Defensive Growth |
Calamos Growth and Rational Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Rational Defensive
The main advantage of trading using opposite Calamos Growth and Rational Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Rational Defensive 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 Rational Defensive will offset losses from the drop in Rational Defensive'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 |
| Rational Defensive vs. T Rowe Price | Rational Defensive vs. Versatile Bond Portfolio | Rational Defensive vs. Ab Global Bond | Rational Defensive vs. Artisan High Income |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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