Correlation Between Calamos Dynamic and Investment
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Investment 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 Investment 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 Investment Of America, you can compare the effects of market volatilities on Calamos Dynamic and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Investment.
Diversification Opportunities for Calamos Dynamic and Investment
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Investment is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Investment Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Of America 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Of America has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Investment go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Investment
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 6.21 times less return on investment than Investment. In addition to that, Calamos Dynamic is 1.55 times more volatile than Investment Of America. It trades about 0.04 of its total potential returns per unit of risk. Investment Of America is currently generating about 0.35 per unit of volatility. If you would invest 6,034 in Investment Of America on September 5, 2024 and sell it today you would earn a total of 336.00 from holding Investment Of America or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Investment Of America
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Investment Of America |
Calamos Dynamic and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Investment
The main advantage of trading using opposite Calamos Dynamic and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment'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 |
| Investment vs. Calamos Dynamic Convertible | Investment vs. Allianzgi Convertible Income | Investment vs. Putnam Convertible Incm Gwth | Investment vs. Virtus 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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