Correlation Between Calamos Growth and Morningstar International
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Morningstar International 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 International 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 International Equity, you can compare the effects of market volatilities on Calamos Growth and Morningstar International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Morningstar International.
Diversification Opportunities for Calamos Growth and Morningstar International
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Morningstar is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Morningstar International Equi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morningstar International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morningstar International has no effect on the direction of Calamos Growth i.e., Calamos Growth and Morningstar International go up and down completely randomly.
Pair Corralation between Calamos Growth and Morningstar International
Assuming the 90 days horizon Calamos Growth Fund is expected to generate 1.34 times more return on investment than Morningstar International. However, Calamos Growth is 1.34 times more volatile than Morningstar International Equity. It trades about -0.04 of its potential returns per unit of risk. Morningstar International Equity is currently generating about -0.4 per unit of risk. If you would invest 4,533 in Calamos Growth Fund on October 11, 2024 and sell it today you would lose (52.00) from holding Calamos Growth Fund or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Fund vs. Morningstar International Equi
Performance |
| Timeline |
| Calamos Growth |
| Morningstar International |
Calamos Growth and Morningstar International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Morningstar International
The main advantage of trading using opposite Calamos Growth and Morningstar International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Morningstar International 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 International will offset losses from the drop in Morningstar International's long position.| Calamos Growth vs. Ab Small Cap | Calamos Growth vs. T Rowe Price | Calamos Growth vs. Rbb Fund | Calamos Growth vs. Semiconductor Ultrasector Profund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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