Correlation Between Calamos Growth and Morningstar Defensive
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Morningstar 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 Morningstar 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 Morningstar Defensive Bond, you can compare the effects of market volatilities on Calamos Growth and Morningstar 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 Morningstar Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Morningstar Defensive.
Diversification Opportunities for Calamos Growth and Morningstar Defensive
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Morningstar is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Morningstar Defensive Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morningstar Defensive 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 Morningstar Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morningstar Defensive has no effect on the direction of Calamos Growth i.e., Calamos Growth and Morningstar Defensive go up and down completely randomly.
Pair Corralation between Calamos Growth and Morningstar Defensive
Assuming the 90 days horizon Calamos Growth Fund is expected to generate 6.69 times more return on investment than Morningstar Defensive. However, Calamos Growth is 6.69 times more volatile than Morningstar Defensive Bond. It trades about 0.09 of its potential returns per unit of risk. Morningstar Defensive Bond is currently generating about 0.13 per unit of risk. If you would invest 2,878 in Calamos Growth Fund on October 21, 2024 and sell it today you would earn a total of 1,639 from holding Calamos Growth Fund or generate 56.95% 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. Morningstar Defensive Bond
Performance |
| Timeline |
| Calamos Growth |
| Morningstar Defensive |
Calamos Growth and Morningstar Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Morningstar Defensive
The main advantage of trading using opposite Calamos Growth and Morningstar Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Morningstar 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 Morningstar Defensive will offset losses from the drop in Morningstar Defensive's long position.| Calamos Growth vs. Qs Large Cap | Calamos Growth vs. Tax Managed Large Cap | Calamos Growth vs. Gmo Global Equity | Calamos Growth vs. Transamerica Asset Allocation |
| Morningstar Defensive vs. Needham Aggressive Growth | Morningstar Defensive vs. Calamos Growth Fund | Morningstar Defensive vs. Lifestyle Ii Growth | Morningstar Defensive vs. Small Pany Growth |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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