Correlation Between Europacific Growth and Calamos International
Can any of the company-specific risk be diversified away by investing in both Europacific Growth and Calamos International 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 Europacific Growth and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europacific Growth Fund and Calamos International Growth, you can compare the effects of market volatilities on Europacific Growth and Calamos International 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 Europacific Growth with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europacific Growth and Calamos International.
Diversification Opportunities for Europacific Growth and Calamos International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Europacific and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Europacific Growth 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 Europacific Growth Fund are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Europacific Growth i.e., Europacific Growth and Calamos International go up and down completely randomly.
Pair Corralation between Europacific Growth and Calamos International
Assuming the 90 days horizon Europacific Growth Fund is expected to under-perform the Calamos International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Europacific Growth Fund is 1.03 times less risky than Calamos International. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Calamos International Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,194 in Calamos International Growth on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Calamos International Growth or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Europacific Growth Fund vs. Calamos International Growth
Performance |
| Timeline |
| Europacific Growth |
| Calamos International |
Europacific Growth and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europacific Growth and Calamos International
The main advantage of trading using opposite Europacific Growth and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Europacific Growth vs. Vanguard Institutional Index | Europacific Growth vs. Vanguard Mid Cap Index | Europacific Growth vs. Washington Mutual Investors | Europacific Growth vs. Vanguard Small Cap Index |
| Calamos International vs. Calamos Global Growth | Calamos International vs. Calamos Growth Income | Calamos International vs. Calamos Opportunistic Value | Calamos International vs. Calamos High Income |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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