Correlation Between Calamos Dynamic and Cavanal Hill
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Cavanal Hill 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 Cavanal Hill 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 Cavanal Hill Ultra, you can compare the effects of market volatilities on Calamos Dynamic and Cavanal Hill 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 Cavanal Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Cavanal Hill.
Diversification Opportunities for Calamos Dynamic and Cavanal Hill
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Cavanal is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Cavanal Hill Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cavanal Hill Ultra 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 Cavanal Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cavanal Hill Ultra has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Cavanal Hill go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Cavanal Hill
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Cavanal Hill. In addition to that, Calamos Dynamic is 16.38 times more volatile than Cavanal Hill Ultra. It trades about -0.04 of its total potential returns per unit of risk. Cavanal Hill Ultra is currently generating about 0.27 per unit of volatility. If you would invest 995.00 in Cavanal Hill Ultra on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Cavanal Hill Ultra or generate 0.4% 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. Cavanal Hill Ultra
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Cavanal Hill Ultra |
Calamos Dynamic and Cavanal Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Cavanal Hill
The main advantage of trading using opposite Calamos Dynamic and Cavanal Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Cavanal Hill 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 Cavanal Hill will offset losses from the drop in Cavanal Hill'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 |
| Cavanal Hill vs. Calamos Dynamic Convertible | Cavanal Hill vs. Inflation Protected Bond Fund | Cavanal Hill vs. Blrc Sgy Mnp | Cavanal Hill vs. Touchstone Premium Yield |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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