Correlation Between Calamos Dynamic and Aberdeen Gbl
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Aberdeen Gbl 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 Aberdeen Gbl 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 Aberdeen Gbl Eq, you can compare the effects of market volatilities on Calamos Dynamic and Aberdeen Gbl 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 Aberdeen Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Aberdeen Gbl.
Diversification Opportunities for Calamos Dynamic and Aberdeen Gbl
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Aberdeen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Aberdeen Gbl Eq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Gbl Eq 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 Aberdeen Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Gbl Eq has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Aberdeen Gbl go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Aberdeen Gbl
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Aberdeen Gbl. In addition to that, Calamos Dynamic is 1.39 times more volatile than Aberdeen Gbl Eq. It trades about -0.22 of its total potential returns per unit of risk. Aberdeen Gbl Eq is currently generating about -0.1 per unit of volatility. If you would invest 1,147 in Aberdeen Gbl Eq on September 12, 2024 and sell it today you would lose (16.00) from holding Aberdeen Gbl Eq or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Aberdeen Gbl Eq
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Aberdeen Gbl Eq |
Calamos Dynamic and Aberdeen Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Aberdeen Gbl
The main advantage of trading using opposite Calamos Dynamic and Aberdeen Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Aberdeen Gbl 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 Aberdeen Gbl will offset losses from the drop in Aberdeen Gbl'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 |
| Aberdeen Gbl vs. Vanguard Small Cap Value | Aberdeen Gbl vs. Omni Small Cap Value | Aberdeen Gbl vs. Mutual Of America | Aberdeen Gbl vs. Fidelity Small Cap |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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