Correlation Between Calamos Growth and Prudential Health
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Prudential Health 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 Prudential Health 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 Prudential Health Sciences, you can compare the effects of market volatilities on Calamos Growth and Prudential Health 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 Prudential Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Prudential Health.
Diversification Opportunities for Calamos Growth and Prudential Health
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Prudential is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Prudential Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Health 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 Prudential Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Health has no effect on the direction of Calamos Growth i.e., Calamos Growth and Prudential Health go up and down completely randomly.
Pair Corralation between Calamos Growth and Prudential Health
Assuming the 90 days horizon Calamos Growth Fund is expected to generate 0.94 times more return on investment than Prudential Health. However, Calamos Growth Fund is 1.06 times less risky than Prudential Health. It trades about 0.1 of its potential returns per unit of risk. Prudential Health Sciences is currently generating about 0.01 per unit of risk. If you would invest 2,703 in Calamos Growth Fund on October 13, 2024 and sell it today you would earn a total of 1,788 from holding Calamos Growth Fund or generate 66.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Fund vs. Prudential Health Sciences
Performance |
| Timeline |
| Calamos Growth |
| Prudential Health |
Calamos Growth and Prudential Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Prudential Health
The main advantage of trading using opposite Calamos Growth and Prudential Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Prudential Health 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 Prudential Health will offset losses from the drop in Prudential Health's long position.| Calamos Growth vs. Gabelli Convertible And | Calamos Growth vs. Fidelity Vertible Securities | Calamos Growth vs. Absolute Convertible Arbitrage | Calamos Growth vs. Virtus Convertible |
| Prudential Health vs. Qs Growth Fund | Prudential Health vs. Calamos Growth Fund | Prudential Health vs. Small Pany Growth | Prudential Health vs. Transamerica Capital 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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