Correlation Between First Eagle and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both First Eagle 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 First Eagle and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Value and Calamos Growth Fund, you can compare the effects of market volatilities on First Eagle 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 First Eagle with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Calamos Growth.
Diversification Opportunities for First Eagle and Calamos Growth
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Value and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and First Eagle 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 First Eagle Value 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 has no effect on the direction of First Eagle i.e., First Eagle and Calamos Growth go up and down completely randomly.
Pair Corralation between First Eagle and Calamos Growth
Assuming the 90 days horizon First Eagle is expected to generate 1.24 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, First Eagle Value is 1.84 times less risky than Calamos Growth. It trades about 0.14 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,403 in Calamos Growth Fund on September 1, 2024 and sell it today you would earn a total of 288.00 from holding Calamos Growth Fund or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Value vs. Calamos Growth Fund
Performance |
| Timeline |
| First Eagle Value |
| Calamos Growth |
First Eagle and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Calamos Growth
The main advantage of trading using opposite First Eagle and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle 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.| First Eagle vs. Vanguard Small Cap Growth | First Eagle vs. Small Midcap Dividend Income | First Eagle vs. Artisan Small Cap | First Eagle vs. Kinetics Small Cap |
| Calamos Growth vs. Fidelity Small Cap | Calamos Growth vs. Pace Smallmedium Value | Calamos Growth vs. Amg River Road | Calamos Growth vs. Boston Partners Small |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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