Correlation Between Calamos Dynamic and Fidelity Mega
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Fidelity Mega 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 Mega 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 Mega Cap, you can compare the effects of market volatilities on Calamos Dynamic and Fidelity Mega 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 Mega. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Fidelity Mega.
Diversification Opportunities for Calamos Dynamic and Fidelity Mega
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Fidelity is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Fidelity Mega Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Mega Cap 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 Mega. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Mega Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Fidelity Mega go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Fidelity Mega
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.45 times less return on investment than Fidelity Mega. In addition to that, Calamos Dynamic is 1.4 times more volatile than Fidelity Mega Cap. It trades about 0.06 of its total potential returns per unit of risk. Fidelity Mega Cap is currently generating about 0.13 per unit of volatility. If you would invest 1,648 in Fidelity Mega Cap on September 4, 2024 and sell it today you would earn a total of 1,004 from holding Fidelity Mega Cap or generate 60.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Fidelity Mega Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Fidelity Mega Cap |
Calamos Dynamic and Fidelity Mega Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Fidelity Mega
The main advantage of trading using opposite Calamos Dynamic and Fidelity Mega positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Fidelity Mega 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 Mega will offset losses from the drop in Fidelity Mega'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 Mega vs. Tax Managed Mid Small | Fidelity Mega vs. Chartwell Small Cap | Fidelity Mega vs. Baird Smallmid Cap | Fidelity Mega vs. The Hartford Small |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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