Correlation Between Calamos Dynamic and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Morgan Stanley 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 Morgan Stanley 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 Morgan Stanley Institutional, you can compare the effects of market volatilities on Calamos Dynamic and Morgan Stanley 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 Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Morgan Stanley.
Diversification Opportunities for Calamos Dynamic and Morgan Stanley
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Morgan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Morgan Stanley Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley Insti 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley Insti has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Morgan Stanley go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Morgan Stanley
If you would invest 2,372 in Calamos Dynamic Convertible on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Calamos Dynamic Convertible or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Morgan Stanley Institutional
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Morgan Stanley Insti |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Calamos Dynamic and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Morgan Stanley
The main advantage of trading using opposite Calamos Dynamic and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley'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 |
| Morgan Stanley vs. Realty Income | Morgan Stanley vs. Dynex Capital | Morgan Stanley vs. First Industrial Realty | Morgan Stanley vs. Healthcare Realty Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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