Correlation Between Real Return and Calamos Growth

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

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

Diversification Opportunities for Real Return and Calamos Growth

-0.62

Correlation Coefficient

Real Return  Calamos Growth

Excellent diversification

The 3 months correlation between Real and Calamos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Real Return Fund and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Real Return 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 Real Return Fund 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 Real Return i.e., Real Return and Calamos Growth go up and down completely randomly.

Pair Corralation between Real Return and Calamos Growth

Assuming the 90 days horizon Real Return Fund is expected to under-perform the Calamos Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Real Return Fund is 3.51 times less risky than Calamos Growth. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Calamos Growth Fund is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  4,194  in Calamos Growth Fund on September 3, 2024 and sell it today you would earn a total of  538.00  from holding Calamos Growth Fund or generate 12.83% return on investment over 90 days.

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

Real Return Fund  vs.  Calamos Growth Fund

Real Return Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Real Return Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Real Return is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Growth

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Growth Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calamos Growth may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Real Return and Calamos Growth

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

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.