Correlation Between Icon Financial and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Icon Financial 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 Icon Financial and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Financial Fund and Calamos Growth Fund, you can compare the effects of market volatilities on Icon Financial 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 Icon Financial with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Calamos Growth.
Diversification Opportunities for Icon Financial and Calamos Growth
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and Calamos is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Icon Financial 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 Icon Financial Fund 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 Icon Financial i.e., Icon Financial and Calamos Growth go up and down completely randomly.
Pair Corralation between Icon Financial and Calamos Growth
Assuming the 90 days horizon Icon Financial is expected to generate 23.36 times less return on investment than Calamos Growth. In addition to that, Icon Financial is 1.1 times more volatile than Calamos Growth Fund. It trades about 0.0 of its total potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.1 per unit of volatility. If you would invest 2,746 in Calamos Growth Fund on October 18, 2024 and sell it today you would earn a total of 1,745 from holding Calamos Growth Fund or generate 63.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Icon Financial Fund vs. Calamos Growth Fund
Performance |
| Timeline |
| Icon Financial |
| Calamos Growth |
Icon Financial and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Calamos Growth
The main advantage of trading using opposite Icon Financial and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial 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.| Icon Financial vs. Aqr Sustainable Long Short | Icon Financial vs. Old Westbury Short Term | Icon Financial vs. Chartwell Short Duration | Icon Financial vs. Rbc Short Duration |
| Calamos Growth vs. Icon Financial Fund | Calamos Growth vs. Goldman Sachs Financial | Calamos Growth vs. John Hancock Financial | Calamos Growth vs. Gabelli Global Financial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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