Correlation Between Calamos Growth and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Oppenheimer 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 Oppenheimer 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 Oppenheimer International Bond, you can compare the effects of market volatilities on Calamos Growth and Oppenheimer 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Oppenheimer International.
Diversification Opportunities for Calamos Growth and Oppenheimer International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Oppenheimer is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Oppenheimer International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Calamos Growth i.e., Calamos Growth and Oppenheimer International go up and down completely randomly.
Pair Corralation between Calamos Growth and Oppenheimer International
Assuming the 90 days horizon Calamos Growth Fund is expected to generate 2.2 times more return on investment than Oppenheimer International. However, Calamos Growth is 2.2 times more volatile than Oppenheimer International Bond. It trades about 0.1 of its potential returns per unit of risk. Oppenheimer International Bond is currently generating about 0.04 per unit of risk. If you would invest 3,905 in Calamos Growth Fund on September 1, 2024 and sell it today you would earn a total of 827.00 from holding Calamos Growth Fund or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Calamos Growth Fund vs. Oppenheimer International Bond
Performance |
| Timeline |
| Calamos Growth |
| Oppenheimer International |
Calamos Growth and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Oppenheimer International
The main advantage of trading using opposite Calamos Growth and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Oppenheimer 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.The idea behind Calamos Growth Fund and Oppenheimer International Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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