Correlation Between Calamos Growth and Fpa Flexible

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

Diversification Opportunities for Calamos Growth and Fpa Flexible

-0.67

Correlation Coefficient

Calamos Growth  Fpa Flexible

Excellent diversification

The 3 months correlation between Calamos and Fpa is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Fpa Flexible Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fpa Flexible Fixed 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 Fpa Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fpa Flexible Fixed has no effect on the direction of Calamos Growth i.e., Calamos Growth and Fpa Flexible go up and down completely randomly.

Pair Corralation between Calamos Growth and Fpa Flexible

Assuming the 90 days horizon Calamos Growth Fund is expected to under-perform the Fpa Flexible. In addition to that, Calamos Growth is 8.78 times more volatile than Fpa Flexible Fixed. It trades about -0.17 of its total potential returns per unit of risk. Fpa Flexible Fixed is currently generating about 0.21 per unit of volatility. If you would invest  998.00  in Fpa Flexible Fixed on December 19, 2024 and sell it today you would earn a total of  22.00  from holding Fpa Flexible Fixed or generate 2.2% return on investment over 90 days.

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

Calamos Growth Fund  vs.  Fpa Flexible Fixed

Calamos Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Growth Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Fpa Flexible Fixed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fpa Flexible Fixed are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Fpa Flexible 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 Fpa Flexible

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

The idea behind Calamos Growth Fund and Fpa Flexible Fixed 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.