Correlation Between Calamos Dynamic and World Energy
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and World Energy 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 World Energy 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 World Energy Fund, you can compare the effects of market volatilities on Calamos Dynamic and World Energy 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 World Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and World Energy.
Diversification Opportunities for Calamos Dynamic and World Energy
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and World is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and World Energy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Energy 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 World Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Energy has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and World Energy go up and down completely randomly.
Pair Corralation between Calamos Dynamic and World Energy
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the World Energy. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Dynamic Convertible is 1.15 times less risky than World Energy. The fund trades about -0.04 of its potential returns per unit of risk. The World Energy Fund is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,423 in World Energy Fund on August 31, 2024 and sell it today you would earn a total of 109.00 from holding World Energy Fund or generate 7.66% 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. World Energy Fund
Performance |
| Timeline |
| Calamos Dynamic Conv |
| World Energy |
Calamos Dynamic and World Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and World Energy
The main advantage of trading using opposite Calamos Dynamic and World Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, World Energy 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 World Energy will offset losses from the drop in World Energy'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 |
| World Energy vs. Columbia Vertible Securities | World Energy vs. Advent Claymore Convertible | World Energy vs. Absolute Convertible Arbitrage | World Energy vs. Calamos Dynamic Convertible |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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