Correlation Between Calamos Dynamic and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Small, you can compare the effects of market volatilities on Calamos Dynamic and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Fidelity Advisor.
Diversification Opportunities for Calamos Dynamic and Fidelity Advisor
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Fidelity is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Fidelity Advisor Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Small 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Small has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Fidelity Advisor
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.34 times more return on investment than Fidelity Advisor. However, Calamos Dynamic Convertible is 2.94 times less risky than Fidelity Advisor. It trades about -0.07 of its potential returns per unit of risk. Fidelity Advisor Small is currently generating about -0.16 per unit of risk. If you would invest 2,480 in Calamos Dynamic Convertible on October 25, 2024 and sell it today you would lose (34.00) from holding Calamos Dynamic Convertible or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Fidelity Advisor Small
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Fidelity Advisor Small |
Calamos Dynamic and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Fidelity Advisor
The main advantage of trading using opposite Calamos Dynamic and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor'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 |
| Fidelity Advisor vs. Fidelity Sai Convertible | Fidelity Advisor vs. Advent Claymore Convertible | Fidelity Advisor vs. Calamos Dynamic Convertible | Fidelity Advisor vs. Rationalpier 88 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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