Correlation Between Aquila Tax and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Aquila Tax 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 Aquila Tax and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquila Tax Free Trust and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Aquila Tax 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 Aquila Tax with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquila Tax and Calamos Dynamic.
Diversification Opportunities for Aquila Tax and Calamos Dynamic
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aquila and Calamos is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aquila Tax Free Trust 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 Aquila Tax 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 Aquila Tax Free Trust 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 Aquila Tax i.e., Aquila Tax and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Aquila Tax and Calamos Dynamic
Assuming the 90 days horizon Aquila Tax is expected to generate 7.62 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, Aquila Tax Free Trust is 5.85 times less risky than Calamos Dynamic. It trades about 0.1 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,690 in Calamos Dynamic Convertible on September 15, 2024 and sell it today you would earn a total of 721.00 from holding Calamos Dynamic Convertible or generate 42.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquila Tax Free Trust vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Aquila Tax Free |
| Calamos Dynamic Conv |
Aquila Tax and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquila Tax and Calamos Dynamic
The main advantage of trading using opposite Aquila Tax and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquila Tax 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.| Aquila Tax vs. Calamos Dynamic Convertible | Aquila Tax vs. Allianzgi Convertible Income | Aquila Tax vs. Lord Abbett Convertible | Aquila Tax vs. Advent Claymore Convertible |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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