Correlation Between Mid Cap and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Calamos Growth Income, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Calamos Growth.
Diversification Opportunities for Mid Cap and Calamos Growth
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mid and Calamos is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth 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 Mid Cap 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 Mid Cap Growth 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 Mid Cap i.e., Mid Cap and Calamos Growth go up and down completely randomly.
Pair Corralation between Mid Cap and Calamos Growth
Assuming the 90 days horizon Mid Cap Growth is expected to generate 1.48 times more return on investment than Calamos Growth. However, Mid Cap is 1.48 times more volatile than Calamos Growth Income. It trades about 0.14 of its potential returns per unit of risk. Calamos Growth Income is currently generating about 0.13 per unit of risk. If you would invest 3,086 in Mid Cap Growth on September 1, 2024 and sell it today you would earn a total of 1,345 from holding Mid Cap Growth or generate 43.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. Calamos Growth Income
Performance |
| Timeline |
| Mid Cap Growth |
| Calamos Growth Income |
Mid Cap and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Calamos Growth
The main advantage of trading using opposite Mid Cap and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.| Mid Cap vs. Calamos Growth Fund | Mid Cap vs. Mid Cap Growth | Mid Cap vs. Allianzgi Nfj Mid Cap | Mid Cap vs. Davis New York |
| Calamos Growth vs. Calamos Growth Fund | Calamos Growth vs. Calamos Vertible Fund | Calamos Growth vs. Calamos Global Growth | Calamos Growth vs. Calamos Market Neutral |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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