Correlation Between Calamos Dynamic and Deutsche Gnma
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Deutsche Gnma 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 Deutsche Gnma 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 Deutsche Gnma Fund, you can compare the effects of market volatilities on Calamos Dynamic and Deutsche Gnma 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 Deutsche Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Deutsche Gnma.
Diversification Opportunities for Calamos Dynamic and Deutsche Gnma
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Deutsche is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Deutsche Gnma Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Gnma 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 Deutsche Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Gnma has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Deutsche Gnma go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Deutsche Gnma
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.98 times more return on investment than Deutsche Gnma. However, Calamos Dynamic is 2.98 times more volatile than Deutsche Gnma Fund. It trades about 0.08 of its potential returns per unit of risk. Deutsche Gnma Fund is currently generating about 0.05 per unit of risk. If you would invest 2,166 in Calamos Dynamic Convertible on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Calamos Dynamic Convertible or generate 9.74% 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. Deutsche Gnma Fund
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Deutsche Gnma |
Calamos Dynamic and Deutsche Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Deutsche Gnma
The main advantage of trading using opposite Calamos Dynamic and Deutsche Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Deutsche Gnma 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 Deutsche Gnma will offset losses from the drop in Deutsche Gnma'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 |
| Deutsche Gnma vs. Rationalpier 88 Convertible | Deutsche Gnma vs. Ab Bond Inflation | Deutsche Gnma vs. California Bond Fund | Deutsche Gnma vs. Maryland Tax Free Bond |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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