Correlation Between Calamos Dynamic and Boston Mon
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Boston Mon 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 Boston Mon 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 Boston Mon International, you can compare the effects of market volatilities on Calamos Dynamic and Boston Mon 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 Boston Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Boston Mon.
Diversification Opportunities for Calamos Dynamic and Boston Mon
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Boston is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Boston Mon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Mon International 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 Boston Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Mon International has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Boston Mon go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Boston Mon
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.18 times more return on investment than Boston Mon. However, Calamos Dynamic is 1.18 times more volatile than Boston Mon International. It trades about 0.13 of its potential returns per unit of risk. Boston Mon International is currently generating about 0.04 per unit of risk. If you would invest 1,704 in Calamos Dynamic Convertible on September 14, 2024 and sell it today you would earn a total of 692.00 from holding Calamos Dynamic Convertible or generate 40.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Boston Mon International
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Boston Mon International |
Calamos Dynamic and Boston Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Boston Mon
The main advantage of trading using opposite Calamos Dynamic and Boston Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Boston Mon 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 Boston Mon will offset losses from the drop in Boston Mon'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 |
| Boston Mon vs. Virtus Convertible | Boston Mon vs. Lord Abbett Convertible | Boston Mon vs. Fidelity Sai Convertible | Boston Mon 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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