Correlation Between Calamos Dynamic and Ab Bond
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Ab Bond 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 Bond 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 Bond Inflation, you can compare the effects of market volatilities on Calamos Dynamic and Ab Bond 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 Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Ab Bond.
Diversification Opportunities for Calamos Dynamic and Ab Bond
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and ANBIX is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation 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 Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Ab Bond go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Ab Bond
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Ab Bond. In addition to that, Calamos Dynamic is 5.95 times more volatile than Ab Bond Inflation. It trades about -0.22 of its total potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.06 per unit of volatility. If you would invest 1,026 in Ab Bond Inflation on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Ab Bond Inflation or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Ab Bond Inflation
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Ab Bond Inflation |
Calamos Dynamic and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Ab Bond
The main advantage of trading using opposite Calamos Dynamic and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Ab Bond 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 Bond will offset losses from the drop in Ab Bond'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 Bond vs. SCOR PK | Ab Bond vs. Morningstar Unconstrained Allocation | Ab Bond vs. Thrivent High Yield | Ab Bond vs. Via Renewables |
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.
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