Correlation Between Calamos Strategic and Destinations International

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

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

Diversification Opportunities for Calamos Strategic and Destinations International

-0.54

Correlation Coefficient

Calamos Strategic  Destinations International

Excellent diversification

The 3 months correlation between Calamos and Destinations is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Destinations International Equ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Destinations International and Calamos Strategic 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 Strategic Total are associated (or correlated) with Destinations International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Destinations International has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Destinations International go up and down completely randomly.

Pair Corralation between Calamos Strategic and Destinations International

Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 1.14 times more return on investment than Destinations International. However, Calamos Strategic is 1.14 times more volatile than Destinations International Equity. It trades about 0.08 of its potential returns per unit of risk. Destinations International Equity is currently generating about 0.02 per unit of risk. If you would invest  1,253  in Calamos Strategic Total on October 5, 2024 and sell it today you would earn a total of  503.00  from holding Calamos Strategic Total or generate 40.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.79%
Values	Daily Returns

Calamos Strategic Total  vs.  Destinations International Equ

Calamos Strategic Total

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Strategic Total are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable basic indicators, Calamos Strategic is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Destinations International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Destinations International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic 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 Strategic and Destinations International

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

The idea behind Calamos Strategic Total and Destinations International Equity 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.