Correlation Between Calamos Dynamic and Blackrock Lifepath
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Blackrock Lifepath 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 Blackrock Lifepath 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 Blackrock Lifepath Index, you can compare the effects of market volatilities on Calamos Dynamic and Blackrock Lifepath 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 Blackrock Lifepath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Blackrock Lifepath.
Diversification Opportunities for Calamos Dynamic and Blackrock Lifepath
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Blackrock is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Blackrock Lifepath Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Lifepath Index 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 Blackrock Lifepath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Lifepath Index has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Blackrock Lifepath go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Blackrock Lifepath
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 7.13 times less return on investment than Blackrock Lifepath. In addition to that, Calamos Dynamic is 1.13 times more volatile than Blackrock Lifepath Index. It trades about 0.02 of its total potential returns per unit of risk. Blackrock Lifepath Index is currently generating about 0.15 per unit of volatility. If you would invest 2,417 in Blackrock Lifepath Index on November 4, 2024 and sell it today you would earn a total of 54.00 from holding Blackrock Lifepath Index or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Blackrock Lifepath Index
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Blackrock Lifepath Index |
Calamos Dynamic and Blackrock Lifepath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Blackrock Lifepath
The main advantage of trading using opposite Calamos Dynamic and Blackrock Lifepath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Blackrock Lifepath 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 Blackrock Lifepath will offset losses from the drop in Blackrock Lifepath'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 |
| Blackrock Lifepath vs. Small Pany Growth | Blackrock Lifepath vs. Tax Managed Large Cap | Blackrock Lifepath vs. Qs Growth Fund | Blackrock Lifepath vs. Growth Portfolio Class |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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