Correlation Between Calamos Dynamic and Transamerica Asset
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Transamerica Asset 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 Transamerica Asset 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 Transamerica Asset Allocation, you can compare the effects of market volatilities on Calamos Dynamic and Transamerica Asset 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 Transamerica Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Transamerica Asset.
Diversification Opportunities for Calamos Dynamic and Transamerica Asset
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Transamerica is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Transamerica Asset Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Asset 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 Transamerica Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Asset has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Transamerica Asset go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Transamerica Asset
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Transamerica Asset. In addition to that, Calamos Dynamic is 2.33 times more volatile than Transamerica Asset Allocation. It trades about -0.15 of its total potential returns per unit of risk. Transamerica Asset Allocation is currently generating about 0.2 per unit of volatility. If you would invest 1,405 in Transamerica Asset Allocation on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Transamerica Asset Allocation or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Transamerica Asset Allocation
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Transamerica Asset |
Calamos Dynamic and Transamerica Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Transamerica Asset
The main advantage of trading using opposite Calamos Dynamic and Transamerica Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Transamerica Asset 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 Transamerica Asset will offset losses from the drop in Transamerica Asset'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 |
| Transamerica Asset vs. Virtus Convertible | Transamerica Asset vs. Calamos Dynamic Convertible | Transamerica Asset vs. Gabelli Convertible And | Transamerica Asset vs. Allianzgi Convertible Income |
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 CEOs Directory module to screen CEOs from public companies around the world.
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