Correlation Between Eaton Vance and Calamos Global

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

By analyzing existing cross correlation between Eaton Vance Risk and Calamos Global Dynamic, you can compare the effects of market volatilities on Eaton Vance and Calamos Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Calamos Global.

Diversification Opportunities for Eaton Vance and Calamos Global

0.72

Correlation Coefficient

Eaton Vance  Calamos Global

Poor diversification

The 3 months correlation between Eaton and Calamos is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Risk and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic 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 Risk are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Dynamic has no effect on the direction of Eaton Vance i.e., Eaton Vance and Calamos Global go up and down completely randomly.

Pair Corralation between Eaton Vance and Calamos Global

Considering the 90-day investment horizon Eaton Vance Risk is expected to under-perform the Calamos Global. But the fund apears to be less risky and, when comparing its historical volatility, Eaton Vance Risk is 1.1 times less risky than Calamos Global. The fund trades about -0.12 of its potential returns per unit of risk. The Calamos Global Dynamic is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  667.00  in Calamos Global Dynamic on December 28, 2024 and sell it today you would lose (11.00) from holding Calamos Global Dynamic or give up 1.65% of portfolio value over 90 days.

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

Eaton Vance Risk  vs.  Calamos Global Dynamic

Eaton Vance Risk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Risk has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady basic indicators, Eaton Vance is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Calamos Global Dynamic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Global Dynamic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable technical indicators, Calamos Global is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Eaton Vance and Calamos Global

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

The idea behind Eaton Vance Risk and Calamos Global Dynamic 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.