Correlation Between Small Pany and Calamos Growth

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

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

Diversification Opportunities for Small Pany and Calamos Growth

0.66

Correlation Coefficient

Small Pany  Calamos Growth

Poor diversification

The 3 months correlation between Small and Calamos is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Small Pany Growth and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Small Pany 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 Small Pany Growth 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 Small Pany i.e., Small Pany and Calamos Growth go up and down completely randomly.

Pair Corralation between Small Pany and Calamos Growth

Assuming the 90 days horizon Small Pany Growth is expected to generate 1.47 times more return on investment than Calamos Growth. However, Small Pany is 1.47 times more volatile than Calamos Growth Fund. It trades about -0.12 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about -0.21 per unit of risk. If you would invest  1,705  in Small Pany Growth on October 10, 2024 and sell it today you would lose (105.00) from holding Small Pany Growth or give up 6.16% of portfolio value over 90 days.

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

Small Pany Growth  vs.  Calamos Growth Fund

Small Pany Growth

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Small Pany Growth are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Small Pany showed solid returns over the last few months and may actually be approaching a breakup point.

Calamos Growth

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Growth Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Small Pany and Calamos Growth

The main advantage of trading using opposite Small Pany and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Pany 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.

The idea behind Small Pany Growth and Calamos Growth Fund 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.