Correlation Between Commodities Strategy and Calamos Strategic

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

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

Diversification Opportunities for Commodities Strategy and Calamos Strategic

0.7

Correlation Coefficient

Commodities Strategy  Calamos Strategic

Poor diversification

The 3 months correlation between Commodities and Calamos is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Commodities Strategy 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 Commodities Strategy 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 Commodities Strategy 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 Commodities Strategy i.e., Commodities Strategy and Calamos Strategic go up and down completely randomly.

Pair Corralation between Commodities Strategy and Calamos Strategic

Assuming the 90 days horizon Commodities Strategy is expected to generate 1.66 times less return on investment than Calamos Strategic. In addition to that, Commodities Strategy is 1.42 times more volatile than Calamos Strategic Total. It trades about 0.13 of its total potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.3 per unit of volatility. If you would invest  1,599  in Calamos Strategic Total on May 1, 2025 and sell it today you would earn a total of  236.00  from holding Calamos Strategic Total or generate 14.76% return on investment over 90 days.

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

Commodities Strategy Fund  vs.  Calamos Strategic Total

Commodities Strategy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Commodities Strategy Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Commodities Strategy may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Calamos Strategic Total

Risk-Adjusted Performance

Solid

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 Commodities Strategy and Calamos Strategic

The main advantage of trading using opposite Commodities Strategy and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities Strategy 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 Commodities Strategy 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.