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 Risk and Calamos Convertible And, 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

0.84

Correlation Coefficient

Eaton Vance  Calamos Convertible

Very poor diversification

The 3 months correlation between Eaton and Calamos is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Risk and Calamos Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible And 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 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 And 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 Risk is expected to generate 0.88 times more return on investment than Calamos Convertible. However, Eaton Vance Risk is 1.14 times less risky than Calamos Convertible. It trades about -0.12 of its potential returns per unit of risk. Calamos Convertible And is currently generating about -0.25 per unit of risk. If you would invest  911.00  in Eaton Vance Risk on December 28, 2024 and sell it today you would lose (53.00) from holding Eaton Vance Risk or give up 5.82% of portfolio value over 90 days.

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

Eaton Vance Risk  vs.  Calamos Convertible And

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 Convertible And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Convertible And has generated negative risk-adjusted returns adding no value to fund investors. In spite of abnormal performance in the last few months, the Fund's technical 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.

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 Risk and Calamos Convertible And 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.