Correlation Between Eaton Vance and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Calamos Strategic 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 Eaton Vance and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax and Calamos Strategic Total, you can compare the effects of market volatilities on Eaton Vance and Calamos Strategic 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 Eaton Vance with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Calamos Strategic.
Diversification Opportunities for Eaton Vance and Calamos Strategic
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Calamos is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Eaton Vance 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 Eaton Vance Tax are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Eaton Vance i.e., Eaton Vance and Calamos Strategic go up and down completely randomly.
Pair Corralation between Eaton Vance and Calamos Strategic
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.96 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, Eaton Vance Tax is 1.21 times less risky than Calamos Strategic. It trades about 0.07 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,265 in Calamos Strategic Total on August 31, 2024 and sell it today you would earn a total of 549.00 from holding Calamos Strategic Total or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Calamos Strategic Total
Performance |
| Timeline |
| Eaton Vance Tax |
| Calamos Strategic Total |
Eaton Vance and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Calamos Strategic
The main advantage of trading using opposite Eaton Vance and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Blackrock Muniholdings Closed | Eaton Vance vs. DTF Tax Free | Eaton Vance vs. Eaton Vance Floating |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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