Correlation Between Invesco Global and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Invesco Global 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 Invesco Global and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Global Health and Calamos Growth Fund, you can compare the effects of market volatilities on Invesco Global 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 Invesco Global with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Global and Calamos Growth.
Diversification Opportunities for Invesco Global and Calamos Growth
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Invesco and Calamos is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Global Health and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Invesco Global 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 Invesco Global Health 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 Invesco Global i.e., Invesco Global and Calamos Growth go up and down completely randomly.
Pair Corralation between Invesco Global and Calamos Growth
Assuming the 90 days horizon Invesco Global Health is expected to generate 0.74 times more return on investment than Calamos Growth. However, Invesco Global Health is 1.35 times less risky than Calamos Growth. It trades about 0.28 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.08 per unit of risk. If you would invest 1,744 in Invesco Global Health on October 26, 2024 and sell it today you would earn a total of 78.00 from holding Invesco Global Health or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Global Health vs. Calamos Growth Fund
Performance |
| Timeline |
| Invesco Global Health |
| Calamos Growth |
Invesco Global and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Global and Calamos Growth
The main advantage of trading using opposite Invesco Global and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Global 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.| Invesco Global vs. Eagle Mlp Strategy | Invesco Global vs. Embark Commodity Strategy | Invesco Global vs. Western Assets Emerging | Invesco Global vs. Jpmorgan Emerging Markets |
| Calamos Growth vs. Tekla Healthcare Investors | Calamos Growth vs. Invesco Global Health | Calamos Growth vs. Health Care Ultrasector | Calamos Growth vs. Fidelity Advisor Health |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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