Correlation Between Calamos Opportunistic and Investment
Can any of the company-specific risk be diversified away by investing in both Calamos Opportunistic and Investment 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 Investment 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 Investment Of America, you can compare the effects of market volatilities on Calamos Opportunistic and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Opportunistic and Investment.
Diversification Opportunities for Calamos Opportunistic and Investment
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Investment is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Investment Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Of America 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Of America has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Investment go up and down completely randomly.
Pair Corralation between Calamos Opportunistic and Investment
Assuming the 90 days horizon Calamos Opportunistic is expected to generate 1.09 times less return on investment than Investment. But when comparing it to its historical volatility, Calamos Opportunistic Value is 1.01 times less risky than Investment. It trades about 0.19 of its potential returns per unit of risk. Investment Of America is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,537 in Investment Of America on February 6, 2024 and sell it today you would earn a total of 911.00 from holding Investment Of America or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Opportunistic Value vs. Investment Of America
Performance |
| Timeline |
| Calamos Opportunistic |
| Investment Of America |
Calamos Opportunistic and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Opportunistic and Investment
The main advantage of trading using opposite Calamos Opportunistic and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Opportunistic position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Calamos Opportunistic vs. Calamos Opportunistic Value | Calamos Opportunistic vs. Calamos Opportunistic Value | Calamos Opportunistic vs. Calamos Growth Fund | Calamos Opportunistic vs. Calamos Growth Fund |
| Investment vs. Income Fund Of | Investment vs. New World Fund | Investment vs. American Mutual Fund | Investment vs. American Mutual 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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