Correlation Between Calamos Growth and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Calamos Convertible 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 Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Growth Income and Calamos Vertible Fund, you can compare the effects of market volatilities on Calamos Growth and Calamos Convertible 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 Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Calamos Convertible.
Diversification Opportunities for Calamos Growth and Calamos Convertible
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Calamos is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Income and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible 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 Income are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Calamos Growth i.e., Calamos Growth and Calamos Convertible go up and down completely randomly.
Pair Corralation between Calamos Growth and Calamos Convertible
Assuming the 90 days horizon Calamos Growth Income is expected to generate 1.01 times more return on investment than Calamos Convertible. However, Calamos Growth is 1.01 times more volatile than Calamos Vertible Fund. It trades about -0.19 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about -0.27 per unit of risk. If you would invest 5,030 in Calamos Growth Income on December 1, 2024 and sell it today you would lose (134.00) from holding Calamos Growth Income or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Income vs. Calamos Vertible Fund
Performance |
| Timeline |
| Calamos Growth Income |
| Calamos Convertible |
Calamos Growth and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Calamos Convertible
The main advantage of trading using opposite Calamos Growth and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Calamos Convertible 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 Calamos Convertible will offset losses from the drop in Calamos Convertible's long position.| Calamos Growth vs. Calamos Market Neutral | Calamos Growth vs. Calamos Growth Fund | Calamos Growth vs. Calamos Vertible Fund | Calamos Growth vs. First Eagle Global |
| Calamos Convertible vs. Aqr Managed Futures | Calamos Convertible vs. Lord Abbett Inflation | Calamos Convertible vs. Ab Bond Inflation | Calamos Convertible vs. American Funds Inflation |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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