Correlation Between Growth Fund and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Calamos Growth Fund, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Calamos Growth.
Diversification Opportunities for Growth Fund and Calamos Growth
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Growth and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Growth Fund 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and Calamos Growth go up and down completely randomly.
Pair Corralation between Growth Fund and Calamos Growth
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.82 times more return on investment than Calamos Growth. However, Growth Fund Of is 1.22 times less risky than Calamos Growth. It trades about 0.04 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.01 per unit of risk. If you would invest 5,951 in Growth Fund Of on October 22, 2024 and sell it today you would earn a total of 639.00 from holding Growth Fund Of or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Calamos Growth Fund
Performance |
| Timeline |
| Growth Fund |
| Calamos Growth |
Growth Fund and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Calamos Growth
The main advantage of trading using opposite Growth Fund and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Advisory Research Mlp | Growth Fund vs. Environment And Alternative | Growth Fund vs. Oil Gas Ultrasector | Growth Fund vs. Hennessy Bp Energy |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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