Correlation Between M Large and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both M Large 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 M Large and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between M Large Cap and Calamos Growth Fund, you can compare the effects of market volatilities on M Large 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 M Large with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Large and Calamos Growth.
Diversification Opportunities for M Large and Calamos Growth
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MTCGX and Calamos is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding M Large Cap and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and M Large 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 M Large Cap 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 M Large i.e., M Large and Calamos Growth go up and down completely randomly.
Pair Corralation between M Large and Calamos Growth
Assuming the 90 days horizon M Large is expected to generate 1.39 times less return on investment than Calamos Growth. In addition to that, M Large is 1.23 times more volatile than Calamos Growth Fund. It trades about 0.05 of its total potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.08 per unit of volatility. If you would invest 3,551 in Calamos Growth Fund on October 11, 2024 and sell it today you would earn a total of 1,015 from holding Calamos Growth Fund or generate 28.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
M Large Cap vs. Calamos Growth Fund
Performance |
| Timeline |
| M Large Cap |
| Calamos Growth |
M Large and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M Large and Calamos Growth
The main advantage of trading using opposite M Large and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M Large 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.| M Large vs. Oakhurst Short Duration | M Large vs. Fidelity Flex Servative | M Large vs. Cmg Ultra Short | M Large vs. Ultra Short Fixed Income |
| Calamos Growth vs. Pgim Conservative Retirement | Calamos Growth vs. Wilmington Trust Retirement | Calamos Growth vs. Qs Moderate Growth | Calamos Growth vs. Wealthbuilder Moderate Balanced |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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