Correlation Between Walmart and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Walmart 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 Walmart and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Calamos Growth Income, you can compare the effects of market volatilities on Walmart 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 Walmart with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Calamos Growth.
Diversification Opportunities for Walmart and Calamos Growth
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walmart and Calamos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walmart 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 Walmart 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 Walmart 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 Walmart i.e., Walmart and Calamos Growth go up and down completely randomly.
Pair Corralation between Walmart and Calamos Growth
Considering the 90-day investment horizon Walmart is expected to generate 1.5 times more return on investment than Calamos Growth. However, Walmart is 1.5 times more volatile than Calamos Growth Income. It trades about 0.39 of its potential returns per unit of risk. Calamos Growth Income is currently generating about 0.2 per unit of risk. If you would invest 8,275 in Walmart on August 29, 2024 and sell it today you would earn a total of 856.00 from holding Walmart or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Calamos Growth Income
Performance |
| Timeline |
| Walmart |
| Calamos Growth Income |
Walmart and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Calamos Growth
The main advantage of trading using opposite Walmart and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart 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.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
| Calamos Growth vs. Calamos Growth Fund | Calamos Growth vs. Davis New York | Calamos Growth vs. First Eagle Global | Calamos Growth vs. Calamos Vertible Fund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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