Correlation Between Calamos Dynamic and Buffalo Mid
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Buffalo Mid 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 Buffalo Mid 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 Buffalo Mid Cap, you can compare the effects of market volatilities on Calamos Dynamic and Buffalo Mid 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 Buffalo Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Buffalo Mid.
Diversification Opportunities for Calamos Dynamic and Buffalo Mid
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Buffalo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Buffalo Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buffalo Mid Cap 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 Buffalo Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buffalo Mid Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Buffalo Mid go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Buffalo Mid
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.02 times more return on investment than Buffalo Mid. However, Calamos Dynamic is 1.02 times more volatile than Buffalo Mid Cap. It trades about 0.15 of its potential returns per unit of risk. Buffalo Mid Cap is currently generating about 0.06 per unit of risk. If you would invest 1,701 in Calamos Dynamic Convertible on August 26, 2024 and sell it today you would earn a total of 750.00 from holding Calamos Dynamic Convertible or generate 44.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Buffalo Mid Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Buffalo Mid Cap |
Calamos Dynamic and Buffalo Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Buffalo Mid
The main advantage of trading using opposite Calamos Dynamic and Buffalo Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Buffalo Mid 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 Buffalo Mid will offset losses from the drop in Buffalo Mid'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 |
| Buffalo Mid vs. Franklin Vertible Securities | Buffalo Mid vs. Allianzgi Convertible Income | Buffalo Mid vs. Calamos Dynamic Convertible | Buffalo Mid vs. Harbor Vertible Securities |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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