Correlation Between Calamos Dynamic and First Investors
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and First Investors 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 First Investors 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 First Investors Tax, you can compare the effects of market volatilities on Calamos Dynamic and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and First Investors.
Diversification Opportunities for Calamos Dynamic and First Investors
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and First is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and First Investors Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Tax 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Tax has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and First Investors go up and down completely randomly.
Pair Corralation between Calamos Dynamic and First Investors
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 3.35 times more return on investment than First Investors. However, Calamos Dynamic is 3.35 times more volatile than First Investors Tax. It trades about 0.08 of its potential returns per unit of risk. First Investors Tax is currently generating about 0.07 per unit of risk. If you would invest 1,825 in Calamos Dynamic Convertible on September 12, 2024 and sell it today you would earn a total of 556.00 from holding Calamos Dynamic Convertible or generate 30.47% 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. First Investors Tax
Performance |
| Timeline |
| Calamos Dynamic Conv |
| First Investors Tax |
Calamos Dynamic and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and First Investors
The main advantage of trading using opposite Calamos Dynamic and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' 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 |
| First Investors vs. Calamos Dynamic Convertible | First Investors vs. Gabelli Convertible And | First Investors vs. Absolute Convertible Arbitrage | First Investors vs. Lord Abbett 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |