Correlation Between Eaton Vance and Calamos Convertible

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

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

Diversification Opportunities for Eaton Vance and Calamos Convertible

-0.29

Correlation Coefficient

Eaton Vance  Calamos Convertible

Very good diversification

The 3 months correlation between Eaton and Calamos is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Calamos Convertible Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Eaton Vance 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 Eaton Vance National are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Eaton Vance i.e., Eaton Vance and Calamos Convertible go up and down completely randomly.

Pair Corralation between Eaton Vance and Calamos Convertible

Considering the 90-day investment horizon Eaton Vance is expected to generate 751.0 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Eaton Vance National is 1.91 times less risky than Calamos Convertible. It trades about 0.0 of its potential returns per unit of risk. Calamos Convertible Opportunities is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,099  in Calamos Convertible Opportunities on August 31, 2024 and sell it today you would earn a total of  106.00  from holding Calamos Convertible Opportunities or generate 9.65% return on investment over 90 days.

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

Eaton Vance National  vs.  Calamos Convertible Opportunit

Eaton Vance National

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Eaton Vance National has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Calamos Convertible

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Convertible Opportunities are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly inconsistent technical indicators, Calamos Convertible may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Eaton Vance and Calamos Convertible

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

The idea behind Eaton Vance National and Calamos Convertible Opportunities 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.