Correlation Between Calamos Dynamic and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Aristotle Funds 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 Aristotle Funds 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 Aristotle Funds Series, you can compare the effects of market volatilities on Calamos Dynamic and Aristotle Funds 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 Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Aristotle Funds.
Diversification Opportunities for Calamos Dynamic and Aristotle Funds
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Aristotle is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series 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 Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Aristotle Funds go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Aristotle Funds
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.2 times less return on investment than Aristotle Funds. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.16 times less risky than Aristotle Funds. It trades about 0.09 of its potential returns per unit of risk. Aristotle Funds Series is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 920.00 in Aristotle Funds Series on September 1, 2024 and sell it today you would earn a total of 134.00 from holding Aristotle Funds Series or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Aristotle Funds Series
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Aristotle Funds Series |
Calamos Dynamic and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Aristotle Funds
The main advantage of trading using opposite Calamos Dynamic and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' 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 |
| Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Value Eq |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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