Correlation Between Calamos Dynamic and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Federated Hermes 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 Federated Hermes 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 Federated Hermes Emerging, you can compare the effects of market volatilities on Calamos Dynamic and Federated Hermes 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 Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Federated Hermes.
Diversification Opportunities for Calamos Dynamic and Federated Hermes
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Federated is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Federated Hermes Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Emerging 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 Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Emerging has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Federated Hermes go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Federated Hermes
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.95 times more return on investment than Federated Hermes. However, Calamos Dynamic Convertible is 1.05 times less risky than Federated Hermes. It trades about 0.09 of its potential returns per unit of risk. Federated Hermes Emerging is currently generating about 0.04 per unit of risk. If you would invest 2,123 in Calamos Dynamic Convertible on September 1, 2024 and sell it today you would earn a total of 254.00 from holding Calamos Dynamic Convertible or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Federated Hermes Emerging
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Federated Hermes Emerging |
Calamos Dynamic and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Federated Hermes
The main advantage of trading using opposite Calamos Dynamic and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' 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 |
| Federated Hermes vs. Federated Emerging Market | Federated Hermes vs. Federated Mdt All | Federated Hermes vs. Federated Mdt Balanced | Federated Hermes vs. Federated Global Allocation |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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