Correlation Between Templeton Growth and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Templeton Growth 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 Templeton Growth and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and Calamos Growth Fund, you can compare the effects of market volatilities on Templeton Growth 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 Templeton Growth with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Calamos Growth.
Diversification Opportunities for Templeton Growth and Calamos Growth
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Templeton and Calamos is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth 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 Templeton 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 Templeton Growth 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 Templeton Growth i.e., Templeton Growth and Calamos Growth go up and down completely randomly.
Pair Corralation between Templeton Growth and Calamos Growth
Assuming the 90 days horizon Templeton Growth Fund is expected to under-perform the Calamos Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Templeton Growth Fund is 1.4 times less risky than Calamos Growth. The mutual fund trades about -0.26 of its potential returns per unit of risk. The Calamos Growth Fund is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 4,606 in Calamos Growth Fund on October 12, 2024 and sell it today you would lose (125.00) from holding Calamos Growth Fund or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Growth Fund vs. Calamos Growth Fund
Performance |
| Timeline |
| Templeton Growth |
| Calamos Growth |
Templeton Growth and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Calamos Growth
The main advantage of trading using opposite Templeton Growth and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth 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.| Templeton Growth vs. Federated Global Allocation | Templeton Growth vs. Kinetics Global Fund | Templeton Growth vs. Investec Global Franchise | Templeton Growth vs. Barings Global Floating |
| Calamos Growth vs. Ab Small Cap | Calamos Growth vs. T Rowe Price | Calamos Growth vs. Rbb Fund | Calamos Growth vs. Semiconductor Ultrasector Profund |
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..
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