Correlation Between Calamos Dynamic and Ab Discovery
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Ab Discovery 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 Ab Discovery 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 Ab Discovery Value, you can compare the effects of market volatilities on Calamos Dynamic and Ab Discovery 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 Ab Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Ab Discovery.
Diversification Opportunities for Calamos Dynamic and Ab Discovery
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and ABCSX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Ab Discovery Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Discovery Value 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 Ab Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Discovery Value has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Ab Discovery go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Ab Discovery
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.46 times less return on investment than Ab Discovery. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.17 times less risky than Ab Discovery. It trades about 0.08 of its potential returns per unit of risk. Ab Discovery Value is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,808 in Ab Discovery Value on September 5, 2024 and sell it today you would earn a total of 268.00 from holding Ab Discovery Value or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Ab Discovery Value
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Ab Discovery Value |
Calamos Dynamic and Ab Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Ab Discovery
The main advantage of trading using opposite Calamos Dynamic and Ab Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Ab Discovery 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 Ab Discovery will offset losses from the drop in Ab Discovery'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 |
| Ab Discovery vs. Gmo High Yield | Ab Discovery vs. Calamos Dynamic Convertible | Ab Discovery vs. Touchstone Premium Yield | Ab Discovery vs. Versatile Bond Portfolio |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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