Correlation Between Calamos Opportunistic and Fundamental Large
Can any of the company-specific risk be diversified away by investing in both Calamos Opportunistic and Fundamental Large 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 Fundamental Large 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 Fundamental Large Cap, you can compare the effects of market volatilities on Calamos Opportunistic and Fundamental Large 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 Fundamental Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Opportunistic and Fundamental Large.
Diversification Opportunities for Calamos Opportunistic and Fundamental Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Fundamental is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Fundamental Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Large Cap 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 Fundamental Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Large Cap has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Fundamental Large go up and down completely randomly.
Pair Corralation between Calamos Opportunistic and Fundamental Large
Assuming the 90 days horizon Calamos Opportunistic Value is expected to under-perform the Fundamental Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calamos Opportunistic Value is 1.0 times less risky than Fundamental Large. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Fundamental Large Cap is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 5,438 in Fundamental Large Cap on January 24, 2024 and sell it today you would lose (159.00) from holding Fundamental Large Cap or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Opportunistic Value vs. Fundamental Large Cap
Performance |
| Timeline |
| Calamos Opportunistic |
| Fundamental Large Cap |
Calamos Opportunistic and Fundamental Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Opportunistic and Fundamental Large
The main advantage of trading using opposite Calamos Opportunistic and Fundamental Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Opportunistic position performs unexpectedly, Fundamental Large 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 Fundamental Large will offset losses from the drop in Fundamental Large's long position.| Calamos Opportunistic vs. Calamos Market Neutral | Calamos Opportunistic vs. Calamos Growth Income | Calamos Opportunistic vs. Calamos Global Growth | Calamos Opportunistic vs. Calamos Growth Income |
| Fundamental Large vs. Regional Bank Fund | Fundamental Large vs. Regional Bank Fund | Fundamental Large vs. Multimanager Lifestyle Moderate | Fundamental Large vs. Multimanager Lifestyle Balanced |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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