Correlation Between Calamos Dynamic and The Hartford
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and The Hartford 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 The Hartford 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 The Hartford Midcap, you can compare the effects of market volatilities on Calamos Dynamic and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and The Hartford.
Diversification Opportunities for Calamos Dynamic and The Hartford
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and The is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Midcap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and The Hartford go up and down completely randomly.
Pair Corralation between Calamos Dynamic and The Hartford
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.41 times less return on investment than The Hartford. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.17 times less risky than The Hartford. It trades about 0.01 of its potential returns per unit of risk. The Hartford Midcap is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,095 in The Hartford Midcap on October 24, 2024 and sell it today you would earn a total of 26.00 from holding The Hartford Midcap or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. The Hartford Midcap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Hartford Midcap |
Calamos Dynamic and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and The Hartford
The main advantage of trading using opposite Calamos Dynamic and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford'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 |
| The Hartford vs. Fidelity Sai Convertible | The Hartford vs. Absolute Convertible Arbitrage | The Hartford vs. Gabelli Convertible And | The Hartford vs. Calamos Dynamic 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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