Correlation Between Calamos Growth and Eaton Vance

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

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

Diversification Opportunities for Calamos Growth and Eaton Vance

0.22

Correlation Coefficient

Calamos Growth  Eaton Vance

Modest diversification

The 3 months correlation between Calamos and Eaton is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Eaton Vance Ohio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Ohio and Calamos Growth 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 Growth Fund are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Ohio has no effect on the direction of Calamos Growth i.e., Calamos Growth and Eaton Vance go up and down completely randomly.

Pair Corralation between Calamos Growth and Eaton Vance

Assuming the 90 days horizon Calamos Growth Fund is expected to under-perform the Eaton Vance. In addition to that, Calamos Growth is 6.12 times more volatile than Eaton Vance Ohio. It trades about -0.21 of its total potential returns per unit of risk. Eaton Vance Ohio is currently generating about -0.32 per unit of volatility. If you would invest  842.00  in Eaton Vance Ohio on October 10, 2024 and sell it today you would lose (15.00) from holding Eaton Vance Ohio or give up 1.78% of portfolio value over 90 days.

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

Calamos Growth Fund  vs.  Eaton Vance Ohio

Calamos Growth

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Growth Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eaton Vance Ohio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Ohio has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Eaton Vance 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 Growth and Eaton Vance

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

The idea behind Calamos Growth Fund and Eaton Vance Ohio 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..