Correlation Between Calamos Dynamic and American Century
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and American Century 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 Calamos Dynamic and American Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Dynamic Convertible and American Century One, you can compare the effects of market volatilities on Calamos Dynamic and American Century 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 Calamos Dynamic with a short position of American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and American Century.
Diversification Opportunities for Calamos Dynamic and American Century
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and American is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and American Century One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century One and Calamos Dynamic 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 Calamos Dynamic Convertible are associated (or correlated) with American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century One has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and American Century go up and down completely randomly.
Pair Corralation between Calamos Dynamic and American Century
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 2.64 times less return on investment than American Century. In addition to that, Calamos Dynamic is 3.88 times more volatile than American Century One. It trades about 0.04 of its total potential returns per unit of risk. American Century One is currently generating about 0.38 per unit of volatility. If you would invest 1,022 in American Century One on September 5, 2024 and sell it today you would earn a total of 24.00 from holding American Century One or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. American Century One
Performance |
| Timeline |
| Calamos Dynamic Conv |
| American Century One |
Calamos Dynamic and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and American Century
The main advantage of trading using opposite Calamos Dynamic and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
| American Century vs. Mid Cap Value | American Century vs. Equity Growth Fund | American Century vs. Income Growth Fund | American Century vs. Diversified Bond Fund |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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