Correlation Between Calamos Market and Turner Emerging

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

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

Diversification Opportunities for Calamos Market and Turner Emerging

-0.31

Correlation Coefficient

Calamos Market  Turner Emerging

Very good diversification

The 3 months correlation between Calamos and Turner is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Turner Emerging Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turner Emerging Growth and Calamos Market 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 Market Neutral are associated (or correlated) with Turner Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turner Emerging Growth has no effect on the direction of Calamos Market i.e., Calamos Market and Turner Emerging go up and down completely randomly.

Pair Corralation between Calamos Market and Turner Emerging

Assuming the 90 days horizon Calamos Market Neutral is expected to generate 0.13 times more return on investment than Turner Emerging. However, Calamos Market Neutral is 7.66 times less risky than Turner Emerging. It trades about 0.14 of its potential returns per unit of risk. Turner Emerging Growth is currently generating about -0.09 per unit of risk. If you would invest  1,491  in Calamos Market Neutral on December 27, 2024 and sell it today you would earn a total of  22.00  from holding Calamos Market Neutral or generate 1.48% return on investment over 90 days.

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

Calamos Market Neutral  vs.  Turner Emerging Growth

Calamos Market Neutral

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Market Neutral are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calamos Market is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Turner Emerging Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Turner Emerging Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calamos Market and Turner Emerging

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

The idea behind Calamos Market Neutral and Turner Emerging Growth 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.