Correlation Between Oppenheimer International and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Oppenheimer International 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 Oppenheimer International and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer International Bond and Calamos Growth Fund, you can compare the effects of market volatilities on Oppenheimer International 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 Oppenheimer International with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer International and Calamos Growth.
Diversification Opportunities for Oppenheimer International and Calamos Growth
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oppenheimer and Calamos is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer International Bond and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Oppenheimer International 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 Oppenheimer International Bond 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 Oppenheimer International i.e., Oppenheimer International and Calamos Growth go up and down completely randomly.
Pair Corralation between Oppenheimer International and Calamos Growth
Assuming the 90 days horizon Oppenheimer International is expected to generate 5.4 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Oppenheimer International Bond is 2.2 times less risky than Calamos Growth. It trades about 0.04 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,905 in Calamos Growth Fund on September 1, 2024 and sell it today you would earn a total of 827.00 from holding Calamos Growth Fund or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Oppenheimer International Bond vs. Calamos Growth Fund
Performance |
| Timeline |
| Oppenheimer International |
| Calamos Growth |
Oppenheimer International and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer International and Calamos Growth
The main advantage of trading using opposite Oppenheimer International and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer International 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.The idea behind Oppenheimer International Bond and Calamos Growth Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets |