Correlation Between Eaton Vance and Calamos LongShort
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Calamos LongShort 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 LongShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Senior and Calamos LongShort Equity, you can compare the effects of market volatilities on Eaton Vance and Calamos LongShort 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 LongShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Calamos LongShort.
Diversification Opportunities for Eaton Vance and Calamos LongShort
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Calamos is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Calamos LongShort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos LongShort Equity 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 Senior are associated (or correlated) with Calamos LongShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos LongShort Equity has no effect on the direction of Eaton Vance i.e., Eaton Vance and Calamos LongShort go up and down completely randomly.
Pair Corralation between Eaton Vance and Calamos LongShort
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.72 times more return on investment than Calamos LongShort. However, Eaton Vance Senior is 1.38 times less risky than Calamos LongShort. It trades about 0.14 of its potential returns per unit of risk. Calamos LongShort Equity is currently generating about -0.02 per unit of risk. If you would invest 617.00 in Eaton Vance Senior on August 27, 2024 and sell it today you would earn a total of 8.00 from holding Eaton Vance Senior or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Calamos LongShort Equity
Performance |
| Timeline |
| Eaton Vance Senior |
| Calamos LongShort Equity |
Eaton Vance and Calamos LongShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Calamos LongShort
The main advantage of trading using opposite Eaton Vance and Calamos LongShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Calamos LongShort 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 LongShort will offset losses from the drop in Calamos LongShort's long position.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
| Calamos LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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