Correlation Between Dow Jones and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Calamos Growth 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 Dow Jones and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Calamos Growth Income, you can compare the effects of market volatilities on Dow Jones and Calamos Growth 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 Dow Jones with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Calamos Growth.
Diversification Opportunities for Dow Jones and Calamos Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dow and Calamos is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Calamos Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth Income and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth Income has no effect on the direction of Dow Jones i.e., Dow Jones and Calamos Growth go up and down completely randomly.
Pair Corralation between Dow Jones and Calamos Growth
Assuming the 90 days trading horizon Dow Jones is expected to generate 4.03 times less return on investment than Calamos Growth. In addition to that, Dow Jones is 1.28 times more volatile than Calamos Growth Income. It trades about 0.07 of its total potential returns per unit of risk. Calamos Growth Income is currently generating about 0.38 per unit of volatility. If you would invest 5,066 in Calamos Growth Income on September 18, 2024 and sell it today you would earn a total of 169.00 from holding Calamos Growth Income or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dow Jones Industrial vs. Calamos Growth Income
Performance |
| Timeline |
Dow Jones and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Calamos Growth Income
Pair trading matchups for Calamos Growth
Pair Trading with Dow Jones and Calamos Growth
The main advantage of trading using opposite Dow Jones and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.| Dow Jones vs. Commonwealth Bank of | Dow Jones vs. AmTrust Financial Services | Dow Jones vs. Forsys Metals Corp | Dow Jones vs. Juniata Valley Financial |
| Calamos Growth vs. Calamos Antetokounmpo Sustainable | Calamos Growth vs. Innealta Capital Sector | Calamos Growth vs. Calamos Antetokounmpo Sustainable | Calamos Growth vs. Calamos Antetokounmpo Sustainable |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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