Correlation Between First Eagle and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both First Eagle 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 First Eagle and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and Calamos Growth Income, you can compare the effects of market volatilities on First Eagle 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 First Eagle with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Calamos Growth.
Diversification Opportunities for First Eagle and Calamos Growth
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Calamos is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global 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 First Eagle 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 First Eagle Global 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 First Eagle i.e., First Eagle and Calamos Growth go up and down completely randomly.
Pair Corralation between First Eagle and Calamos Growth
Assuming the 90 days horizon First Eagle Global is expected to under-perform the Calamos Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, First Eagle Global is 1.55 times less risky than Calamos Growth. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Calamos Growth Income is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,732 in Calamos Growth Income on August 29, 2024 and sell it today you would earn a total of 162.00 from holding Calamos Growth Income or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Calamos Growth Income
Performance |
| Timeline |
| First Eagle Global |
| Calamos Growth Income |
First Eagle and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Calamos Growth
The main advantage of trading using opposite First Eagle and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle 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.| First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global Bond |
| Calamos Growth vs. Calamos Market Neutral | Calamos Growth vs. Calamos Growth Fund | Calamos Growth vs. Calamos Vertible Fund | Calamos Growth vs. First Eagle Global |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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