Correlation Between Calamos Opportunistic and Chevron Corp
Can any of the company-specific risk be diversified away by investing in both Calamos Opportunistic and Chevron Corp 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 Calamos Opportunistic and Chevron Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Opportunistic Value and Chevron Corp, you can compare the effects of market volatilities on Calamos Opportunistic and Chevron Corp 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 Calamos Opportunistic with a short position of Chevron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Opportunistic and Chevron Corp.
Diversification Opportunities for Calamos Opportunistic and Chevron Corp
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Chevron is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Chevron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp and Calamos Opportunistic 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 Calamos Opportunistic Value are associated (or correlated) with Chevron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron Corp has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Chevron Corp go up and down completely randomly.
Pair Corralation between Calamos Opportunistic and Chevron Corp
Assuming the 90 days horizon Calamos Opportunistic Value is expected to under-perform the Chevron Corp. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calamos Opportunistic Value is 1.12 times less risky than Chevron Corp. The mutual fund trades about -0.35 of its potential returns per unit of risk. The Chevron Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 15,455 in Chevron Corp on January 20, 2024 and sell it today you would earn a total of 545.00 from holding Chevron Corp or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Opportunistic Value vs. Chevron Corp
Performance |
| Timeline |
| Calamos Opportunistic |
| Chevron Corp |
Calamos Opportunistic and Chevron Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Opportunistic and Chevron Corp
The main advantage of trading using opposite Calamos Opportunistic and Chevron Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Opportunistic position performs unexpectedly, Chevron Corp 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 Chevron Corp will offset losses from the drop in Chevron Corp's long position.| Calamos Opportunistic vs. Calamos Growth Fund | Calamos Opportunistic vs. Calamos Growth Fund | Calamos Opportunistic vs. Calamos Global Growth | Calamos Opportunistic vs. Calamos Global Growth |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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