Correlation Between CBH and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both CBH 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 CBH and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Calamos Dynamic Convertible, you can compare the effects of market volatilities on CBH 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 CBH with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Calamos Dynamic.
Diversification Opportunities for CBH and Calamos Dynamic
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBH and Calamos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CBH 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 CBH 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 CBH 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 CBH i.e., CBH and Calamos Dynamic go up and down completely randomly.
Pair Corralation between CBH and Calamos Dynamic
Considering the 90-day investment horizon CBH is expected to generate 2.8 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, CBH is 3.85 times less risky than Calamos Dynamic. It trades about 0.16 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,891 in Calamos Dynamic Convertible on August 28, 2024 and sell it today you would earn a total of 498.00 from holding Calamos Dynamic Convertible or generate 26.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 71.29% |
| Values | Daily Returns |
CBH vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Calamos Dynamic Conv |
CBH and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Calamos Dynamic
The main advantage of trading using opposite CBH and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH 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.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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