Correlation Between Calamos Dynamic and Transamerica High
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Transamerica High 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 High 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 High Yield, you can compare the effects of market volatilities on Calamos Dynamic and Transamerica High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Transamerica High.
Diversification Opportunities for Calamos Dynamic and Transamerica High
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Transamerica is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Transamerica High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica High Yield has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Transamerica High go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Transamerica High
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 3.67 times more return on investment than Transamerica High. However, Calamos Dynamic is 3.67 times more volatile than Transamerica High Yield. It trades about 0.07 of its potential returns per unit of risk. Transamerica High Yield is currently generating about 0.1 per unit of risk. If you would invest 1,684 in Calamos Dynamic Convertible on September 12, 2024 and sell it today you would earn a total of 697.00 from holding Calamos Dynamic Convertible or generate 41.39% 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 High Yield
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Transamerica High Yield |
Calamos Dynamic and Transamerica High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Transamerica High
The main advantage of trading using opposite Calamos Dynamic and Transamerica High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Transamerica High 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 High will offset losses from the drop in Transamerica High'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 High vs. Fidelity Sai Convertible | Transamerica High vs. Virtus Convertible | Transamerica High vs. Allianzgi Convertible Income | Transamerica High 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |