Correlation Between Eaton Vance and Calamos Global

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

By analyzing existing cross correlation between Eaton Vance Municipal and Calamos Global Dynamic, you can compare the effects of market volatilities on Eaton Vance and Calamos Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Calamos Global.

Diversification Opportunities for Eaton Vance and Calamos Global

-0.02

Correlation Coefficient

Eaton Vance  Calamos Global

Good diversification

The 3 months correlation between Eaton and Calamos is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Municipal and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic 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 Municipal are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Dynamic has no effect on the direction of Eaton Vance i.e., Eaton Vance and Calamos Global go up and down completely randomly.

Pair Corralation between Eaton Vance and Calamos Global

Considering the 90-day investment horizon Eaton Vance Municipal is expected to generate 0.92 times more return on investment than Calamos Global. However, Eaton Vance Municipal is 1.09 times less risky than Calamos Global. It trades about 0.16 of its potential returns per unit of risk. Calamos Global Dynamic is currently generating about 0.04 per unit of risk. If you would invest  1,042  in Eaton Vance Municipal on August 31, 2024 and sell it today you would earn a total of  27.00  from holding Eaton Vance Municipal or generate 2.59% return on investment over 90 days.

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

Eaton Vance Municipal  vs.  Calamos Global Dynamic

Eaton Vance Municipal

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Municipal are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Eaton Vance is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Calamos Global Dynamic

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Dynamic are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable technical indicators, Calamos Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Eaton Vance and Calamos Global

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

The idea behind Eaton Vance Municipal and Calamos Global Dynamic 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.