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 Tax 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

0.95

Correlation Coefficient

Eaton Vance  Calamos Convertible

Almost no diversification

The 3 months correlation between Eaton and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax 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 Tax 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 is expected to generate 1.02 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Eaton Vance Tax is 1.11 times less risky than Calamos Convertible. It trades about 0.19 of its potential returns per unit of risk. Calamos Convertible And is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,122  in Calamos Convertible And on August 31, 2024 and sell it today you would earn a total of  104.00  from holding Calamos Convertible And or generate 9.27% return on investment over 90 days.

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

Eaton Vance Tax  vs.  Calamos Convertible And

Eaton Vance Tax

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Tax are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Calamos Convertible And

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Convertible And are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal 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 Tax 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.