Correlation Between Ariel Fund and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Ariel Fund 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 Ariel Fund and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ariel Fund Institutional and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Ariel Fund 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 Ariel Fund with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ariel Fund and Calamos Dynamic.
Diversification Opportunities for Ariel Fund and Calamos Dynamic
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ariel and Calamos is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ariel Fund Institutional 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 Ariel Fund 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 Ariel Fund Institutional 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 Ariel Fund i.e., Ariel Fund and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Ariel Fund and Calamos Dynamic
Assuming the 90 days horizon Ariel Fund Institutional is expected to generate 1.16 times more return on investment than Calamos Dynamic. However, Ariel Fund is 1.16 times more volatile than Calamos Dynamic Convertible. It trades about 0.2 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.0 per unit of risk. If you would invest 7,841 in Ariel Fund Institutional on September 1, 2024 and sell it today you would earn a total of 424.00 from holding Ariel Fund Institutional or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ariel Fund Institutional vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Ariel Fund Institutional |
| Calamos Dynamic Conv |
Ariel Fund and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ariel Fund and Calamos Dynamic
The main advantage of trading using opposite Ariel Fund and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ariel Fund 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.| Ariel Fund vs. Calamos Dynamic Convertible | Ariel Fund vs. Columbia Vertible Securities | Ariel Fund vs. Advent Claymore Convertible | Ariel Fund vs. Gabelli Convertible And |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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