Correlation Between Calamos Total and Calamos Phineus

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

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

Diversification Opportunities for Calamos Total and Calamos Phineus

0.44

Correlation Coefficient

Calamos Total  Calamos Phineus

Very weak diversification

The 3 months correlation between Calamos and Calamos is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Total Return and Calamos Phineus Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Phineus Longshort and Calamos Total 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 Total Return are associated (or correlated) with Calamos Phineus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Phineus Longshort has no effect on the direction of Calamos Total i.e., Calamos Total and Calamos Phineus go up and down completely randomly.

Pair Corralation between Calamos Total and Calamos Phineus

Assuming the 90 days horizon Calamos Total Return is expected to generate 0.52 times more return on investment than Calamos Phineus. However, Calamos Total Return is 1.92 times less risky than Calamos Phineus. It trades about 0.03 of its potential returns per unit of risk. Calamos Phineus Longshort is currently generating about -0.05 per unit of risk. If you would invest  898.00  in Calamos Total Return on November 29, 2024 and sell it today you would earn a total of  4.00  from holding Calamos Total Return or generate 0.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

Calamos Total Return  vs.  Calamos Phineus Longshort

Calamos Total Return

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Total Return are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Total is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Phineus Longshort

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Phineus Longshort has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Calamos Phineus 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 Total and Calamos Phineus

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

The idea behind Calamos Total Return and Calamos Phineus Longshort 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.