Correlation Between Calamos Hedged and Calamos Total

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

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

Diversification Opportunities for Calamos Hedged and Calamos Total

-0.52

Correlation Coefficient

Calamos Hedged  Calamos Total

Excellent diversification

The 3 months correlation between Calamos and CALAMOS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Hedged Equity and Calamos Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Total Return and Calamos Hedged 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 Hedged Equity are associated (or correlated) with Calamos Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Total Return has no effect on the direction of Calamos Hedged i.e., Calamos Hedged and Calamos Total go up and down completely randomly.

Pair Corralation between Calamos Hedged and Calamos Total

Assuming the 90 days horizon Calamos Hedged Equity is expected to under-perform the Calamos Total. In addition to that, Calamos Hedged is 2.02 times more volatile than Calamos Total Return. It trades about -0.08 of its total potential returns per unit of risk. Calamos Total Return is currently generating about 0.13 per unit of volatility. If you would invest  877.00  in Calamos Total Return on December 30, 2024 and sell it today you would earn a total of  21.00  from holding Calamos Total Return or generate 2.39% return on investment over 90 days.

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

Calamos Hedged Equity  vs.  Calamos Total Return

Calamos Hedged Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Hedged Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Calamos Hedged is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Total Return

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Total Return are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calamos Total is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Hedged and Calamos Total

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

The idea behind Calamos Hedged Equity and Calamos Total Return 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.