Correlation Between Calamos Dynamic and Federated Mdt
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Federated Mdt 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 Mdt 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 Mdt Large, you can compare the effects of market volatilities on Calamos Dynamic and Federated Mdt 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 Mdt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Federated Mdt.
Diversification Opportunities for Calamos Dynamic and Federated Mdt
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Federated is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Federated Mdt Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mdt Large 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 Mdt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mdt Large has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Federated Mdt go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Federated Mdt
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.13 times more return on investment than Federated Mdt. However, Calamos Dynamic is 1.13 times more volatile than Federated Mdt Large. It trades about 0.07 of its potential returns per unit of risk. Federated Mdt Large is currently generating about 0.05 per unit of risk. If you would invest 1,684 in Calamos Dynamic Convertible on September 14, 2024 and sell it today you would earn a total of 712.00 from holding Calamos Dynamic Convertible or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Federated Mdt Large
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Federated Mdt Large |
Calamos Dynamic and Federated Mdt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Federated Mdt
The main advantage of trading using opposite Calamos Dynamic and Federated Mdt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Federated Mdt 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 Mdt will offset losses from the drop in Federated Mdt'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 |
| Federated Mdt vs. Absolute Convertible Arbitrage | Federated Mdt vs. Fidelity Sai Convertible | Federated Mdt vs. Calamos Dynamic Convertible | Federated Mdt vs. Allianzgi Convertible Income |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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