Correlation Between Eaton Vance and Calamos Growth

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

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

Diversification Opportunities for Eaton Vance and Calamos Growth

-0.76

Correlation Coefficient

Eaton Vance  Calamos Growth

Pay attention - limited upside

The 3 months correlation between Eaton and Calamos is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Worldwide and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Eaton Vance 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 Eaton Vance Worldwide 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 Eaton Vance i.e., Eaton Vance and Calamos Growth go up and down completely randomly.

Pair Corralation between Eaton Vance and Calamos Growth

Assuming the 90 days horizon Eaton Vance Worldwide is expected to under-perform the Calamos Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Eaton Vance Worldwide is 1.75 times less risky than Calamos Growth. The mutual fund trades about -0.24 of its potential returns per unit of risk. The Calamos Growth Fund is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,442  in Calamos Growth Fund on September 26, 2024 and sell it today you would earn a total of  95.00  from holding Calamos Growth Fund or generate 2.14% return on investment over 90 days.

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

Eaton Vance Worldwide  vs.  Calamos Growth Fund

Eaton Vance Worldwide

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Worldwide has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Calamos Growth

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Growth Fund are ranked lower than 2 (%) 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 Eaton Vance and Calamos Growth

The main advantage of trading using opposite Eaton Vance and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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 Eaton Vance Worldwide 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 Transaction History module to view history of all your transactions and understand their impact on performance.