Correlation Between Calamos Market and Arbitrage Fund
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Arbitrage Fund 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 Market and Arbitrage Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and The Arbitrage Fund, you can compare the effects of market volatilities on Calamos Market and Arbitrage Fund 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 Market with a short position of Arbitrage Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Arbitrage Fund.
Diversification Opportunities for Calamos Market and Arbitrage Fund
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Arbitrage is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and The Arbitrage Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbitrage Fund and Calamos Market 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 Market Neutral are associated (or correlated) with Arbitrage Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbitrage Fund has no effect on the direction of Calamos Market i.e., Calamos Market and Arbitrage Fund go up and down completely randomly.
Pair Corralation between Calamos Market and Arbitrage Fund
Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.54 times more return on investment than Arbitrage Fund. However, Calamos Market Neutral is 1.84 times less risky than Arbitrage Fund. It trades about 0.23 of its potential returns per unit of risk. The Arbitrage Fund is currently generating about 0.07 per unit of risk. If you would invest 1,371 in Calamos Market Neutral on August 29, 2024 and sell it today you would earn a total of 134.00 from holding Calamos Market Neutral or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. The Arbitrage Fund
Performance |
| Timeline |
| Calamos Market Neutral |
| Arbitrage Fund |
Calamos Market and Arbitrage Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Arbitrage Fund
The main advantage of trading using opposite Calamos Market and Arbitrage Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Arbitrage Fund 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 Arbitrage Fund will offset losses from the drop in Arbitrage Fund's long position.| Calamos Market vs. Counterpoint Tactical Municipal | Calamos Market vs. Nuveen Minnesota Municipal | Calamos Market vs. Franklin High Yield | Calamos Market vs. Ab Impact Municipal |
| Arbitrage Fund vs. The Merger Fund | Arbitrage Fund vs. Calamos Market Neutral | Arbitrage Fund vs. Hussman Strategic Growth | Arbitrage Fund vs. Gateway Fund Class |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |