Correlation Between Calamos Dynamic and American Funds
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and American 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 American 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 American Funds The, you can compare the effects of market volatilities on Calamos Dynamic and American 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and American Funds.
Diversification Opportunities for Calamos Dynamic and American Funds
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and American is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and American Funds The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and American Funds go up and down completely randomly.
Pair Corralation between Calamos Dynamic and American Funds
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the American Funds. In addition to that, Calamos Dynamic is 1.78 times more volatile than American Funds The. It trades about -0.1 of its total potential returns per unit of risk. American Funds The is currently generating about -0.13 per unit of volatility. If you would invest 2,544 in American Funds The on January 14, 2025 and sell it today you would lose (109.00) from holding American Funds The or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. American Funds The
Performance |
| Timeline |
| Calamos Dynamic Conv |
| American Funds |
Calamos Dynamic and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and American Funds
The main advantage of trading using opposite Calamos Dynamic and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, American 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 American Funds will offset losses from the drop in American 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 |
| American Funds vs. Flexible Bond Portfolio | American Funds vs. Multisector Bond Sma | American Funds vs. Scout E Bond | American Funds vs. Doubleline Total Return |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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