Correlation Between Davis New and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Davis New 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 Davis New and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Davis New York and Calamos Growth Income, you can compare the effects of market volatilities on Davis New 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 Davis New with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Davis New and Calamos Growth.
Diversification Opportunities for Davis New and Calamos Growth
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Davis and Calamos is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Davis New York and Calamos Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth Income and Davis New 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 Davis New York 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 Income has no effect on the direction of Davis New i.e., Davis New and Calamos Growth go up and down completely randomly.
Pair Corralation between Davis New and Calamos Growth
Assuming the 90 days horizon Davis New York is expected to generate 0.92 times more return on investment than Calamos Growth. However, Davis New York is 1.09 times less risky than Calamos Growth. It trades about 0.39 of its potential returns per unit of risk. Calamos Growth Income is currently generating about 0.17 per unit of risk. If you would invest 1,989 in Davis New York on November 1, 2024 and sell it today you would earn a total of 118.00 from holding Davis New York or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Davis New York vs. Calamos Growth Income
Performance |
| Timeline |
| Davis New York |
| Calamos Growth Income |
Davis New and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Davis New and Calamos Growth
The main advantage of trading using opposite Davis New and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Davis New 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.| Davis New vs. Live Oak Health | Davis New vs. Blackrock Health Sciences | Davis New vs. Baillie Gifford Health | Davis New vs. Allianzgi Health Sciences |
| Calamos Growth vs. Calamos Growth Fund | Calamos Growth vs. Davis New York | Calamos Growth vs. First Eagle Global | Calamos Growth vs. Calamos Vertible Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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