Correlation Between Calamos Growth and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Mid Cap 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 Mid Cap 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 Mid Cap Growth, you can compare the effects of market volatilities on Calamos Growth and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Mid Cap.
Diversification Opportunities for Calamos Growth and Mid Cap
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Mid is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Fund and Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Growth 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Growth has no effect on the direction of Calamos Growth i.e., Calamos Growth and Mid Cap go up and down completely randomly.
Pair Corralation between Calamos Growth and Mid Cap
Assuming the 90 days horizon Calamos Growth Fund is expected to generate 1.0 times more return on investment than Mid Cap. However, Calamos Growth is 1.0 times more volatile than Mid Cap Growth. It trades about 0.11 of its potential returns per unit of risk. Mid Cap Growth is currently generating about 0.06 per unit of risk. If you would invest 1,285 in Calamos Growth Fund on September 24, 2024 and sell it today you would earn a total of 426.00 from holding Calamos Growth Fund or generate 33.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Growth Fund vs. Mid Cap Growth
Performance |
Timeline |
Calamos Growth |
Mid Cap Growth |
Calamos Growth and Mid Cap Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Growth and Mid Cap
The main advantage of trading using opposite Calamos Growth and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.Calamos Growth vs. Biotechnology Ultrasector Profund | Calamos Growth vs. Pgim Jennison Technology | Calamos Growth vs. Hennessy Technology Fund | Calamos Growth vs. Janus Global Technology |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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