Correlation Between Total Return and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Total Return 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 Total Return and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Total Return Fund and Calamos Growth Fund, you can compare the effects of market volatilities on Total Return 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 Total Return with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Total Return and Calamos Growth.
Diversification Opportunities for Total Return and Calamos Growth
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Total and Calamos is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Total Return 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 Total Return 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 Total Return 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 Total Return i.e., Total Return and Calamos Growth go up and down completely randomly.
Pair Corralation between Total Return and Calamos Growth
Assuming the 90 days horizon Total Return is expected to generate 8.29 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Total Return Fund is 3.05 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 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,677 in Calamos Growth Fund on August 28, 2024 and sell it today you would earn a total of 1,016 from holding Calamos Growth Fund or generate 27.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Total Return Fund vs. Calamos Growth Fund
Performance |
| Timeline |
| Total Return |
| Calamos Growth |
Total Return and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Total Return and Calamos Growth
The main advantage of trading using opposite Total Return and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Total Return 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.| Total Return vs. Virtus High Yield | Total Return vs. Pia High Yield | Total Return vs. Dunham High Yield | Total Return vs. Blackrock High Yield |
| Calamos Growth vs. The Hartford Equity | Calamos Growth vs. Scharf Fund Retail | Calamos Growth vs. Gmo Global Equity | Calamos Growth vs. Dreyfusstandish Global Fixed |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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