Correlation Between Short Real and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Short Real 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 Short Real and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Real Estate and Calamos Growth Fund, you can compare the effects of market volatilities on Short Real 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 Short Real with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Real and Calamos Growth.
Diversification Opportunities for Short Real and Calamos Growth
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Short and Calamos is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Short Real Estate and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Short Real 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 Short Real Estate 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 Short Real i.e., Short Real and Calamos Growth go up and down completely randomly.
Pair Corralation between Short Real and Calamos Growth
Assuming the 90 days horizon Short Real Estate is expected to generate 0.8 times more return on investment than Calamos Growth. However, Short Real Estate is 1.24 times less risky than Calamos Growth. It trades about 0.14 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about -0.08 per unit of risk. If you would invest 733.00 in Short Real Estate on October 30, 2024 and sell it today you would earn a total of 48.00 from holding Short Real Estate or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Real Estate vs. Calamos Growth Fund
Performance |
| Timeline |
| Short Real Estate |
| Calamos Growth |
Short Real and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Real and Calamos Growth
The main advantage of trading using opposite Short Real and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Real 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.| Short Real vs. Balanced Allocation Fund | Short Real vs. Enhanced Large Pany | Short Real vs. Fisher Large Cap | Short Real vs. Nuveen Nwq Large Cap |
| Calamos Growth vs. Principal Lifetime Hybrid | Calamos Growth vs. Upright Assets Allocation | Calamos Growth vs. Us Large Pany | Calamos Growth vs. Tax Managed Large Cap |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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