Correlation Between Calamos Dynamic and Dana Small
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Dana Small 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 Dana Small 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 Dana Small Cap, you can compare the effects of market volatilities on Calamos Dynamic and Dana Small 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 Dana Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Dana Small.
Diversification Opportunities for Calamos Dynamic and Dana Small
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Dana is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Dana Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Small 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 Dana Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Small Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Dana Small go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Dana Small
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.82 times more return on investment than Dana Small. However, Calamos Dynamic Convertible is 1.22 times less risky than Dana Small. It trades about 0.11 of its potential returns per unit of risk. Dana Small Cap is currently generating about 0.06 per unit of risk. If you would invest 1,830 in Calamos Dynamic Convertible on September 14, 2024 and sell it today you would earn a total of 566.00 from holding Calamos Dynamic Convertible or generate 30.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Dana Small Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Dana Small Cap |
Calamos Dynamic and Dana Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Dana Small
The main advantage of trading using opposite Calamos Dynamic and Dana Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Dana Small 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 Dana Small will offset losses from the drop in Dana Small'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 |
| Dana Small vs. Dana Large Cap | Dana Small vs. Dana Large Cap | Dana Small vs. Dana Epiphany Esg | Dana Small vs. Mirova Global Green |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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