Correlation Between Calamos Opportunistic and Calamos Timpani

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

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

Diversification Opportunities for Calamos Opportunistic and Calamos Timpani

0.93

Correlation Coefficient

Calamos Opportunistic  Calamos Timpani

Almost no diversification

The 3 months correlation between Calamos and Calamos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Calamos Timpani Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Timpani Smid and Calamos Opportunistic 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 Calamos Opportunistic Value are associated (or correlated) with Calamos Timpani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Timpani Smid has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Calamos Timpani go up and down completely randomly.

Pair Corralation between Calamos Opportunistic and Calamos Timpani

Assuming the 90 days horizon Calamos Opportunistic is expected to generate 2.77 times less return on investment than Calamos Timpani. But when comparing it to its historical volatility, Calamos Opportunistic Value is 2.47 times less risky than Calamos Timpani. It trades about 0.37 of its potential returns per unit of risk. Calamos Timpani Smid is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  1,438  in Calamos Timpani Smid on September 4, 2024 and sell it today you would earn a total of  251.00  from holding Calamos Timpani Smid or generate 17.45% return on investment over 90 days.

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

Calamos Opportunistic Value  vs.  Calamos Timpani Smid

Calamos Opportunistic

Risk-Adjusted Performance

15 of 100

Good

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

Calamos Timpani Smid

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Timpani Smid are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Calamos Timpani showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calamos Opportunistic and Calamos Timpani

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

The idea behind Calamos Opportunistic Value and Calamos Timpani Smid 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.