Correlation Between Calamos Dynamic and Invesco International
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Invesco International 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 Invesco International 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 Invesco International Diversified, you can compare the effects of market volatilities on Calamos Dynamic and Invesco International 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 Invesco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Invesco International.
Diversification Opportunities for Calamos Dynamic and Invesco International
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Invesco is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Invesco International Diversif in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco International 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 Invesco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco International has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Invesco International go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Invesco International
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.31 times more return on investment than Invesco International. However, Calamos Dynamic is 1.31 times more volatile than Invesco International Diversified. It trades about 0.06 of its potential returns per unit of risk. Invesco International Diversified is currently generating about 0.04 per unit of risk. If you would invest 1,757 in Calamos Dynamic Convertible on September 2, 2024 and sell it today you would earn a total of 620.00 from holding Calamos Dynamic Convertible or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Invesco International Diversif
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Invesco International |
Calamos Dynamic and Invesco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Invesco International
The main advantage of trading using opposite Calamos Dynamic and Invesco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Invesco International 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 Invesco International will offset losses from the drop in Invesco International'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 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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