Correlation Between Calamos Dynamic and Icon Information
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Icon Information 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 Icon Information 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 Icon Information Technology, you can compare the effects of market volatilities on Calamos Dynamic and Icon Information 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 Icon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Icon Information.
Diversification Opportunities for Calamos Dynamic and Icon Information
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Icon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec 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 Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Icon Information go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Icon Information
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.87 times more return on investment than Icon Information. However, Calamos Dynamic Convertible is 1.15 times less risky than Icon Information. It trades about 0.05 of its potential returns per unit of risk. Icon Information Technology is currently generating about -0.03 per unit of risk. If you would invest 2,308 in Calamos Dynamic Convertible on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Calamos Dynamic Convertible or generate 2.99% 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. Icon Information Technology
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Icon Information Tec |
Calamos Dynamic and Icon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Icon Information
The main advantage of trading using opposite Calamos Dynamic and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Icon Information 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 Icon Information will offset losses from the drop in Icon Information'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 |
| Icon Information vs. Allianzgi Convertible Income | Icon Information vs. Fidelity Sai Convertible | Icon Information vs. Rationalpier 88 Convertible | Icon Information 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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