Correlation Between Calamos Dynamic and Income Fund
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Income Fund 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 Income Fund 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 Income Fund Of, you can compare the effects of market volatilities on Calamos Dynamic and Income Fund 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 Income Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Income Fund.
Diversification Opportunities for Calamos Dynamic and Income Fund
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Income is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Income Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Fund 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 Income Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Fund has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Income Fund go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Income Fund
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.24 times more return on investment than Income Fund. However, Calamos Dynamic is 2.24 times more volatile than Income Fund Of. It trades about 0.06 of its potential returns per unit of risk. Income Fund Of is currently generating about 0.08 per unit of risk. If you would invest 1,757 in Calamos Dynamic Convertible on August 31, 2024 and sell it today you would earn a total of 611.00 from holding Calamos Dynamic Convertible or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Income Fund Of
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Income Fund |
Calamos Dynamic and Income Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Income Fund
The main advantage of trading using opposite Calamos Dynamic and Income Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Income Fund 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 Income Fund will offset losses from the drop in Income Fund'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 |
| Income Fund vs. Absolute Convertible Arbitrage | Income Fund vs. The Gamco Global | Income Fund vs. Calamos Dynamic Convertible | Income Fund vs. Lord Abbett 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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