Correlation Between Aristotle Growth and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Aristotle Growth and Calamos Dynamic 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 Aristotle Growth and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristotle Growth Equity and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Aristotle Growth and Calamos Dynamic 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 Aristotle Growth with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Growth and Calamos Dynamic.
Diversification Opportunities for Aristotle Growth and Calamos Dynamic
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aristotle and Calamos is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Growth Equity and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Aristotle 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 Aristotle Growth Equity are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Aristotle Growth i.e., Aristotle Growth and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Aristotle Growth and Calamos Dynamic
Assuming the 90 days horizon Aristotle Growth Equity is expected to generate 1.03 times more return on investment than Calamos Dynamic. However, Aristotle Growth is 1.03 times more volatile than Calamos Dynamic Convertible. It trades about 0.11 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.06 per unit of risk. If you would invest 1,279 in Aristotle Growth Equity on September 3, 2024 and sell it today you would earn a total of 367.00 from holding Aristotle Growth Equity or generate 28.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 44.85% |
| Values | Daily Returns |
Aristotle Growth Equity vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Aristotle Growth Equity |
| Calamos Dynamic Conv |
Aristotle Growth and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristotle Growth and Calamos Dynamic
The main advantage of trading using opposite Aristotle Growth and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Growth position performs unexpectedly, Calamos Dynamic 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 Dynamic will offset losses from the drop in Calamos Dynamic's long position.| Aristotle Growth vs. Oklahoma College Savings | Aristotle Growth vs. Chartwell Small Cap | Aristotle Growth vs. Small Midcap Dividend Income | Aristotle Growth vs. Tax Managed Mid Small |
| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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