Correlation Between FAM and Calamos LongShort

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

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

Diversification Opportunities for FAM and Calamos LongShort

0.0

Correlation Coefficient

FAM  Calamos LongShort

Pay attention - limited upside

The 3 months correlation between FAM and Calamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FAM and Calamos LongShort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos LongShort Equity and FAM 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 FAM are associated (or correlated) with Calamos LongShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos LongShort Equity has no effect on the direction of FAM i.e., FAM and Calamos LongShort go up and down completely randomly.

Pair Corralation between FAM and Calamos LongShort

If you would invest  1,464  in Calamos LongShort Equity on December 24, 2024 and sell it today you would earn a total of  102.00  from holding Calamos LongShort Equity or generate 6.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FAM  vs.  Calamos LongShort Equity

FAM

Risk-Adjusted Performance

Very Weak

Over the last 90 days FAM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, FAM is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Calamos LongShort Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos LongShort Equity are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Calamos LongShort may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with FAM and Calamos LongShort

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

The idea behind FAM and Calamos LongShort Equity 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.