Correlation Between Matson Money and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Matson Money and Calamos Growth 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 Matson Money and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Equity and Calamos Growth Fund, you can compare the effects of market volatilities on Matson Money and Calamos Growth 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 Matson Money with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Calamos Growth.
Diversification Opportunities for Matson Money and Calamos Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Matson and Calamos is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Matson Money 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 Matson Money Equity are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth has no effect on the direction of Matson Money i.e., Matson Money and Calamos Growth go up and down completely randomly.
Pair Corralation between Matson Money and Calamos Growth
Assuming the 90 days horizon Matson Money is expected to generate 1.18 times less return on investment than Calamos Growth. In addition to that, Matson Money is 1.08 times more volatile than Calamos Growth Fund. It trades about 0.15 of its total potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.2 per unit of volatility. If you would invest 1,546 in Calamos Growth Fund on September 12, 2024 and sell it today you would earn a total of 180.00 from holding Calamos Growth Fund or generate 11.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Matson Money Equity vs. Calamos Growth Fund
Performance |
Timeline |
Matson Money Equity |
Calamos Growth |
Matson Money and Calamos Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Matson Money and Calamos Growth
The main advantage of trading using opposite Matson Money and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money position performs unexpectedly, Calamos Growth 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 Growth will offset losses from the drop in Calamos Growth's long position.Matson Money vs. Vanguard Total Stock | Matson Money vs. Vanguard 500 Index | Matson Money vs. Vanguard Total Stock | Matson Money vs. Vanguard Total Stock |
Calamos Growth vs. American Funds The | Calamos Growth vs. American Funds The | Calamos Growth vs. Growth Fund Of | Calamos Growth vs. Growth Fund Of |
Check out your portfolio center.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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