Correlation Between TRON and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both TRON 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 TRON and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRON and Calamos Growth Fund, you can compare the effects of market volatilities on TRON 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 TRON with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRON and Calamos Growth.
Diversification Opportunities for TRON and Calamos Growth
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRON and Calamos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding TRON and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and TRON 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 TRON 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 TRON i.e., TRON and Calamos Growth go up and down completely randomly.
Pair Corralation between TRON and Calamos Growth
Assuming the 90 days trading horizon TRON is expected to generate 8.6 times more return on investment than Calamos Growth. However, TRON is 8.6 times more volatile than Calamos Growth Fund. It trades about 0.08 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.04 per unit of risk. If you would invest 6.17 in TRON on October 16, 2024 and sell it today you would earn a total of 15.83 from holding TRON or generate 256.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.83% |
| Values | Daily Returns |
TRON vs. Calamos Growth Fund
Performance |
| Timeline |
| TRON |
| Calamos Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TRON and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRON and Calamos Growth
The main advantage of trading using opposite TRON and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRON 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.The idea behind TRON and Calamos Growth Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Calamos Growth vs. M Large Cap | Calamos Growth vs. Fisher Large Cap | Calamos Growth vs. Qs Large Cap | 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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