Correlation Between Wabmsx and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Wabmsx 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 Wabmsx and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabmsx and Calamos Growth Fund, you can compare the effects of market volatilities on Wabmsx 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 Wabmsx with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabmsx and Calamos Growth.
Diversification Opportunities for Wabmsx and Calamos Growth
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wabmsx and CALAMOS is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Wabmsx and Calamos Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth and Wabmsx 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 Wabmsx 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 Wabmsx i.e., Wabmsx and Calamos Growth go up and down completely randomly.
Pair Corralation between Wabmsx and Calamos Growth
Assuming the 90 days trading horizon Wabmsx is expected to generate 1.95 times less return on investment than Calamos Growth. But when comparing it to its historical volatility, Wabmsx is 1.23 times less risky than Calamos Growth. It trades about 0.17 of its potential returns per unit of risk. Calamos Growth Fund is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 4,418 in Calamos Growth Fund on March 27, 2025 and sell it today you would earn a total of 180.00 from holding Calamos Growth Fund or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Wabmsx vs. Calamos Growth Fund
Performance |
| Timeline |
| Wabmsx |
| Calamos Growth |
Wabmsx and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wabmsx and Calamos Growth
The main advantage of trading using opposite Wabmsx and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabmsx 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.| Wabmsx vs. The Hartford Emerging | Wabmsx vs. Shelton Emerging Markets | Wabmsx vs. Doubleline Emerging Markets | Wabmsx vs. Aqr Tm Emerging |
| Calamos Growth vs. Ambrus Core Bond | Calamos Growth vs. Gmo High Yield | Calamos Growth vs. Dreyfusstandish Global Fixed | Calamos Growth vs. Morningstar Defensive Bond |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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