Correlation Between Calamos Global and Eagle Growth

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

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

Diversification Opportunities for Calamos Global and Eagle Growth

0.82

Correlation Coefficient

Calamos Global  Eagle Growth

Very poor diversification

The 3 months correlation between Calamos and Eagle is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income and Calamos Global 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 Global Equity are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Calamos Global i.e., Calamos Global and Eagle Growth go up and down completely randomly.

Pair Corralation between Calamos Global and Eagle Growth

Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.37 times more return on investment than Eagle Growth. However, Calamos Global is 1.37 times more volatile than Eagle Growth Income. It trades about 0.12 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.08 per unit of risk. If you would invest  1,169  in Calamos Global Equity on September 14, 2024 and sell it today you would earn a total of  829.00  from holding Calamos Global Equity or generate 70.92% return on investment over 90 days.

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

Calamos Global Equity  vs.  Eagle Growth Income

Calamos Global Equity

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calamos Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Eagle Growth Income

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Growth Income are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking indicators, Eagle Growth 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 Global and Eagle Growth

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

The idea behind Calamos Global Equity and Eagle Growth Income 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.