Correlation Between Calamos Dynamic and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Wells Fargo 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 Wells Fargo 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 Wells Fargo Intrinsic, you can compare the effects of market volatilities on Calamos Dynamic and Wells Fargo 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 Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Wells Fargo.
Diversification Opportunities for Calamos Dynamic and Wells Fargo
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Wells is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Wells Fargo Intrinsic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo Intrinsic 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 Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo Intrinsic has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Wells Fargo go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Wells Fargo
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Wells Fargo. In addition to that, Calamos Dynamic is 1.71 times more volatile than Wells Fargo Intrinsic. It trades about -0.05 of its total potential returns per unit of risk. Wells Fargo Intrinsic is currently generating about 0.24 per unit of volatility. If you would invest 1,439 in Wells Fargo Intrinsic on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Wells Fargo Intrinsic or generate 3.47% 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. Wells Fargo Intrinsic
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Wells Fargo Intrinsic |
Calamos Dynamic and Wells Fargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Wells Fargo
The main advantage of trading using opposite Calamos Dynamic and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.| Calamos Dynamic vs. Calamos LongShort Equity | Calamos Dynamic vs. Calamos Convertible And | Calamos Dynamic vs. Calamos Global Total | Calamos Dynamic vs. DTF Tax Free |
| Wells Fargo vs. Fidelity Sai Convertible | Wells Fargo vs. Allianzgi Convertible Income | Wells Fargo vs. Advent Claymore Convertible | Wells Fargo 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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