Correlation Between Calamos Dynamic and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Fidelity Freedom 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 Freedom 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 Freedom 2030, you can compare the effects of market volatilities on Calamos Dynamic and Fidelity Freedom 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 Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Fidelity Freedom.
Diversification Opportunities for Calamos Dynamic and Fidelity Freedom
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and FIDELITY is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Fidelity Freedom 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom 2030 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 Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom 2030 has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Fidelity Freedom
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.12 times less return on investment than Fidelity Freedom. In addition to that, Calamos Dynamic is 2.18 times more volatile than Fidelity Freedom 2030. It trades about 0.04 of its total potential returns per unit of risk. Fidelity Freedom 2030 is currently generating about 0.1 per unit of volatility. If you would invest 1,801 in Fidelity Freedom 2030 on September 4, 2024 and sell it today you would earn a total of 56.00 from holding Fidelity Freedom 2030 or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Fidelity Freedom 2030
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Fidelity Freedom 2030 |
Calamos Dynamic and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Fidelity Freedom
The main advantage of trading using opposite Calamos Dynamic and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom'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 Freedom vs. Ambrus Core Bond | Fidelity Freedom vs. Ms Global Fixed | Fidelity Freedom vs. Gmo High Yield | Fidelity Freedom 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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