Correlation Between Invesco Gold and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Invesco Gold 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 Gold 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 Gold Special and Calamos Growth Fund, you can compare the effects of market volatilities on Invesco Gold 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 Gold with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Gold and Calamos Growth.
Diversification Opportunities for Invesco Gold and Calamos Growth
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Invesco and Calamos is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Gold Special 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 Gold 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 Gold Special 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 Gold i.e., Invesco Gold and Calamos Growth go up and down completely randomly.
Pair Corralation between Invesco Gold and Calamos Growth
Assuming the 90 days horizon Invesco Gold Special is expected to generate 1.58 times more return on investment than Calamos Growth. However, Invesco Gold is 1.58 times more volatile than Calamos Growth Fund. It trades about 0.2 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about -0.06 per unit of risk. If you would invest 2,778 in Invesco Gold Special on November 27, 2024 and sell it today you would earn a total of 186.00 from holding Invesco Gold Special or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Gold Special vs. Calamos Growth Fund
Performance |
| Timeline |
| Invesco Gold Special |
| Calamos Growth |
Invesco Gold and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Gold and Calamos Growth
The main advantage of trading using opposite Invesco Gold and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Gold 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 Gold vs. Hartford Healthcare Hls | Invesco Gold vs. Baillie Gifford Health | Invesco Gold vs. John Hancock Variable | Invesco Gold vs. Alphacentric Lifesci Healthcare |
| Calamos Growth vs. Us Government Securities | Calamos Growth vs. Fidelity Series Government | Calamos Growth vs. Virtus Seix Government | Calamos Growth vs. Dunham Porategovernment Bond |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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