Correlation Between Calamos Growth and American Funds

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

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

Diversification Opportunities for Calamos Growth and American Funds

0.96

Correlation Coefficient

Calamos Growth  American Funds

Almost no diversification

The 3 months correlation between Calamos and American is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and American Funds The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds and Calamos Growth 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 Growth Fund are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds has no effect on the direction of Calamos Growth i.e., Calamos Growth and American Funds go up and down completely randomly.

Pair Corralation between Calamos Growth and American Funds

Assuming the 90 days horizon Calamos Growth Fund is expected to generate 1.27 times more return on investment than American Funds. However, Calamos Growth is 1.27 times more volatile than American Funds The. It trades about 0.12 of its potential returns per unit of risk. American Funds The is currently generating about 0.1 per unit of risk. If you would invest  1,689  in Calamos Growth Fund on September 12, 2024 and sell it today you would earn a total of  37.00  from holding Calamos Growth Fund or generate 2.19% return on investment over 90 days.

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

Calamos Growth Fund  vs.  American Funds The

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 fundamental indicators, Calamos Growth may actually be approaching a critical reversion point that can send shares even higher in January 2025.

American Funds

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in American Funds The are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, American Funds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Calamos Growth and American Funds

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

The idea behind Calamos Growth Fund and American Funds The 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.