Correlation Between Calamos Opportunistic and Calamos Evolving

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

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

Diversification Opportunities for Calamos Opportunistic and Calamos Evolving

0.25

Correlation Coefficient

Calamos Opportunistic  Calamos Evolving

Modest diversification

The 3 months correlation between Calamos and Calamos is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Calamos Evolving World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Evolving World and Calamos Opportunistic 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 Opportunistic Value are associated (or correlated) with Calamos Evolving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Evolving World has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Calamos Evolving go up and down completely randomly.

Pair Corralation between Calamos Opportunistic and Calamos Evolving

Assuming the 90 days horizon Calamos Opportunistic Value is expected to generate 0.74 times more return on investment than Calamos Evolving. However, Calamos Opportunistic Value is 1.35 times less risky than Calamos Evolving. It trades about 0.2 of its potential returns per unit of risk. Calamos Evolving World is currently generating about 0.07 per unit of risk. If you would invest  2,228  in Calamos Opportunistic Value on September 4, 2024 and sell it today you would earn a total of  222.00  from holding Calamos Opportunistic Value or generate 9.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Calamos Opportunistic Value  vs.  Calamos Evolving World

Calamos Opportunistic

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Opportunistic Value are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Calamos Opportunistic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Calamos Evolving World

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Evolving World are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calamos Evolving 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 Opportunistic and Calamos Evolving

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

The idea behind Calamos Opportunistic Value and Calamos Evolving World 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.