Correlation Between Pcm Fund and Calamos Strategic

Can any of the company-specific risk be diversified away by investing in both Pcm Fund and Calamos Strategic 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 Pcm Fund and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pcm Fund and Calamos Strategic Total, you can compare the effects of market volatilities on Pcm Fund and Calamos Strategic 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 Pcm Fund with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pcm Fund and Calamos Strategic.

Diversification Opportunities for Pcm Fund and Calamos Strategic

0.84

Correlation Coefficient

Pcm Fund  Calamos Strategic

Very poor diversification

The 3 months correlation between Pcm and Calamos is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pcm Fund and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Pcm Fund 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 Pcm Fund are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Pcm Fund i.e., Pcm Fund and Calamos Strategic go up and down completely randomly.

Pair Corralation between Pcm Fund and Calamos Strategic

Considering the 90-day investment horizon Pcm Fund is expected to generate 1.11 times more return on investment than Calamos Strategic. However, Pcm Fund is 1.11 times more volatile than Calamos Strategic Total. It trades about 0.11 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.11 per unit of risk. If you would invest  627.00  in Pcm Fund on May 1, 2025 and sell it today you would earn a total of  8.00  from holding Pcm Fund or generate 1.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Pcm Fund  vs.  Calamos Strategic Total

Pcm Fund

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pcm Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy fundamental indicators, Pcm Fund is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Calamos Strategic Total

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Strategic Total are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively inconsistent basic indicators, Calamos Strategic reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pcm Fund and Calamos Strategic

The main advantage of trading using opposite Pcm Fund and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pcm Fund position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.

The idea behind Pcm Fund and Calamos Strategic Total 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.