Correlation Between Vanguard Institutional and Calamos Strategic

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

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

Diversification Opportunities for Vanguard Institutional and Calamos Strategic

0.98

Correlation Coefficient

Vanguard Institutional  Calamos Strategic

Almost no diversification

The 3 months correlation between Vanguard and Calamos is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Institutional Index 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 Vanguard Institutional 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 Vanguard Institutional Index 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 Vanguard Institutional i.e., Vanguard Institutional and Calamos Strategic go up and down completely randomly.

Pair Corralation between Vanguard Institutional and Calamos Strategic

Assuming the 90 days horizon Vanguard Institutional is expected to generate 1.15 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, Vanguard Institutional Index is 1.05 times less risky than Calamos Strategic. It trades about 0.25 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,612  in Calamos Strategic Total on May 2, 2025 and sell it today you would earn a total of  222.00  from holding Calamos Strategic Total or generate 13.77% return on investment over 90 days.

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

Vanguard Institutional Index  vs.  Calamos Strategic Total

Vanguard Institutional

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Institutional Index are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Vanguard Institutional 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 21 (%) 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 Vanguard Institutional and Calamos Strategic

The main advantage of trading using opposite Vanguard Institutional and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Institutional 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 Vanguard Institutional Index 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.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.