Correlation Between Calamos Growth and American Funds
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and American Funds 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 American Funds 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 American Funds 2015, you can compare the effects of market volatilities on Calamos Growth and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and American Funds.
Diversification Opportunities for Calamos Growth and American Funds
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and American is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and American Funds 2015 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2015 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2015 has no effect on the direction of Calamos Growth i.e., Calamos Growth and American Funds go up and down completely randomly.
Pair Corralation between Calamos Growth and American Funds
Assuming the 90 days horizon Calamos Growth Fund is expected to generate 2.81 times more return on investment than American Funds. However, Calamos Growth is 2.81 times more volatile than American Funds 2015. It trades about 0.09 of its potential returns per unit of risk. American Funds 2015 is currently generating about 0.07 per unit of risk. If you would invest 3,002 in Calamos Growth Fund on October 25, 2024 and sell it today you would earn a total of 1,632 from holding Calamos Growth Fund or generate 54.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Fund vs. American Funds 2015
Performance |
| Timeline |
| Calamos Growth |
| American Funds 2015 |
Calamos Growth and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and American Funds
The main advantage of trading using opposite Calamos Growth and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Calamos Growth vs. Dws Emerging Markets | Calamos Growth vs. Balanced Strategy Fund | Calamos Growth vs. Angel Oak Multi Strategy | Calamos Growth vs. Morgan Stanley Emerging |
| American Funds vs. Virtus High Yield | American Funds vs. Prudential High Yield | American Funds vs. Transamerica High Yield | American Funds vs. Msift High Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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