Correlation Between Calamos Dynamic and Alger Capital
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Alger Capital 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 Alger Capital 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 Alger Capital Appreciation, you can compare the effects of market volatilities on Calamos Dynamic and Alger Capital 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 Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Alger Capital.
Diversification Opportunities for Calamos Dynamic and Alger Capital
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Alger is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Alger Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Capital Apprec 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 Alger Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Capital Apprec has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Alger Capital go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Alger Capital
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Alger Capital. In addition to that, Calamos Dynamic is 3.64 times more volatile than Alger Capital Appreciation. It trades about -0.15 of its total potential returns per unit of risk. Alger Capital Appreciation is currently generating about 0.23 per unit of volatility. If you would invest 757.00 in Alger Capital Appreciation on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Alger Capital Appreciation or generate 1.19% 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. Alger Capital Appreciation
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Alger Capital Apprec |
Calamos Dynamic and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Alger Capital
The main advantage of trading using opposite Calamos Dynamic and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Alger Capital 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 Alger Capital will offset losses from the drop in Alger Capital'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 |
| Alger Capital vs. Prudential Government Income | Alger Capital vs. Dreyfus Government Cash | Alger Capital vs. Dunham Porategovernment Bond | Alger Capital vs. Elfun Government Money |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |