Correlation Between Calamos Dynamic and Wisdomtree Siegel
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Wisdomtree Siegel 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 Wisdomtree Siegel 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 Wisdomtree Siegel Longevity, you can compare the effects of market volatilities on Calamos Dynamic and Wisdomtree Siegel 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 Wisdomtree Siegel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Wisdomtree Siegel.
Diversification Opportunities for Calamos Dynamic and Wisdomtree Siegel
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Wisdomtree is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Wisdomtree Siegel Longevity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisdomtree Siegel 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 Wisdomtree Siegel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wisdomtree Siegel has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Wisdomtree Siegel go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Wisdomtree Siegel
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Wisdomtree Siegel. In addition to that, Calamos Dynamic is 2.41 times more volatile than Wisdomtree Siegel Longevity. It trades about -0.15 of its total potential returns per unit of risk. Wisdomtree Siegel Longevity is currently generating about 0.04 per unit of volatility. If you would invest 1,142 in Wisdomtree Siegel Longevity on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Wisdomtree Siegel Longevity or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Wisdomtree Siegel Longevity
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Wisdomtree Siegel |
Calamos Dynamic and Wisdomtree Siegel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Wisdomtree Siegel
The main advantage of trading using opposite Calamos Dynamic and Wisdomtree Siegel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Wisdomtree Siegel 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 Wisdomtree Siegel will offset losses from the drop in Wisdomtree Siegel'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 |
| Wisdomtree Siegel vs. Jpmorgan High Yield | Wisdomtree Siegel vs. Alpine High Yield | Wisdomtree Siegel vs. Blackrock High Yield | Wisdomtree Siegel vs. Artisan High 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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