Correlation Between Calamos Total and Calamos Growth

Can any of the company-specific risk be diversified away by investing in both Calamos Total and Calamos 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 Total and Calamos Growth 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 Growth Income, you can compare the effects of market volatilities on Calamos Total and Calamos 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 Total with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Total and Calamos Growth.

Diversification Opportunities for Calamos Total and Calamos Growth

-0.4

Correlation Coefficient

Calamos Total  Calamos Growth

Very good diversification

The 3 months correlation between Calamos and Calamos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Total Return and Calamos Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth Income 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth Income has no effect on the direction of Calamos Total i.e., Calamos Total and Calamos Growth go up and down completely randomly.

Pair Corralation between Calamos Total and Calamos Growth

Assuming the 90 days horizon Calamos Total Return is expected to generate 0.33 times more return on investment than Calamos Growth. However, Calamos Total Return is 3.05 times less risky than Calamos Growth. It trades about 0.12 of its potential returns per unit of risk. Calamos Growth Income is currently generating about -0.09 per unit of risk. If you would invest  878.00  in Calamos Total Return on December 30, 2024 and sell it today you would earn a total of  19.00  from holding Calamos Total Return or generate 2.16% return on investment over 90 days.

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

Calamos Total Return  vs.  Calamos Growth Income

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 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental 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 Growth Income

Risk-Adjusted Performance

Very Weak

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

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

The idea behind Calamos Total Return and Calamos 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.