Correlation Between James Balanced and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both James Balanced 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 James Balanced and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Calamos Growth Fund, you can compare the effects of market volatilities on James Balanced 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 James Balanced with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Calamos Growth.
Diversification Opportunities for James Balanced and Calamos Growth
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between James and Calamos is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and James Balanced 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 James Balanced Golden 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 James Balanced i.e., James Balanced and Calamos Growth go up and down completely randomly.
Pair Corralation between James Balanced and Calamos Growth
Assuming the 90 days horizon James Balanced Golden is expected to generate 0.24 times more return on investment than Calamos Growth. However, James Balanced Golden is 4.15 times less risky than Calamos Growth. It trades about -0.01 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about -0.04 per unit of risk. If you would invest 2,290 in James Balanced Golden on November 1, 2024 and sell it today you would lose (12.00) from holding James Balanced Golden or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Calamos Growth Fund
Performance |
| Timeline |
| James Balanced Golden |
| Calamos Growth |
James Balanced and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Calamos Growth
The main advantage of trading using opposite James Balanced and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced 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.| James Balanced vs. Permanent Portfolio Class | James Balanced vs. Berwyn Income Fund | James Balanced vs. Large Cap Fund | James Balanced vs. Westcore Plus Bond |
| Calamos Growth vs. Fuhkbx | Calamos Growth vs. Furyax | Calamos Growth vs. Small Pany Growth | Calamos Growth vs. Flakqx |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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