Correlation Between Calamos Dynamic and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Franklin Lifesmart 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 Franklin Lifesmart 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 Franklin Lifesmart Retirement, you can compare the effects of market volatilities on Calamos Dynamic and Franklin Lifesmart 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 Franklin Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Franklin Lifesmart.
Diversification Opportunities for Calamos Dynamic and Franklin Lifesmart
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Franklin is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Franklin Lifesmart Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart 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 Franklin Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Franklin Lifesmart
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Franklin Lifesmart. In addition to that, Calamos Dynamic is 3.77 times more volatile than Franklin Lifesmart Retirement. It trades about -0.22 of its total potential returns per unit of risk. Franklin Lifesmart Retirement is currently generating about 0.06 per unit of volatility. If you would invest 1,061 in Franklin Lifesmart Retirement on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Franklin Lifesmart Retirement or generate 0.28% 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. Franklin Lifesmart Retirement
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Franklin Lifesmart |
Calamos Dynamic and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Franklin Lifesmart
The main advantage of trading using opposite Calamos Dynamic and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Franklin Lifesmart 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 Franklin Lifesmart will offset losses from the drop in Franklin Lifesmart'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 |
| Franklin Lifesmart vs. Jpmorgan Smartretirement Income | Franklin Lifesmart vs. HUMANA INC | Franklin Lifesmart vs. Barloworld Ltd ADR | Franklin Lifesmart vs. Morningstar Unconstrained 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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