Correlation Between Calamos Dynamic and Gold Portfolio
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Gold Portfolio 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 Gold Portfolio 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 Gold Portfolio Fidelity, you can compare the effects of market volatilities on Calamos Dynamic and Gold Portfolio 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 Gold Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Gold Portfolio.
Diversification Opportunities for Calamos Dynamic and Gold Portfolio
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Gold is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Gold Portfolio Fidelity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Portfolio Fidelity 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 Gold Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Portfolio Fidelity has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Gold Portfolio go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Gold Portfolio
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.28 times less return on investment than Gold Portfolio. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.69 times less risky than Gold Portfolio. It trades about 0.08 of its potential returns per unit of risk. Gold Portfolio Fidelity is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,380 in Gold Portfolio Fidelity on September 3, 2024 and sell it today you would earn a total of 272.00 from holding Gold Portfolio Fidelity or generate 11.43% 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. Gold Portfolio Fidelity
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Gold Portfolio Fidelity |
Calamos Dynamic and Gold Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Gold Portfolio
The main advantage of trading using opposite Calamos Dynamic and Gold Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Gold Portfolio 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 Gold Portfolio will offset losses from the drop in Gold Portfolio'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 |
| Gold Portfolio vs. Maryland Tax Free Bond | Gold Portfolio vs. Touchstone Premium Yield | Gold Portfolio vs. Blrc Sgy Mnp | Gold Portfolio 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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