Correlation Between Calamos Dynamic and Msif Advantage
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Msif Advantage 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 Msif Advantage 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 Msif Advantage Port, you can compare the effects of market volatilities on Calamos Dynamic and Msif Advantage 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 Msif Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Msif Advantage.
Diversification Opportunities for Calamos Dynamic and Msif Advantage
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Msif is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Msif Advantage Port in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Msif Advantage Port 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 Msif Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Msif Advantage Port has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Msif Advantage go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Msif Advantage
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Msif Advantage. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Dynamic Convertible is 1.33 times less risky than Msif Advantage. The fund trades about -0.15 of its potential returns per unit of risk. The Msif Advantage Port is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,343 in Msif Advantage Port on September 13, 2024 and sell it today you would earn a total of 208.00 from holding Msif Advantage Port or generate 8.88% 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. Msif Advantage Port
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Msif Advantage Port |
Calamos Dynamic and Msif Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Msif Advantage
The main advantage of trading using opposite Calamos Dynamic and Msif Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Msif Advantage 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 Msif Advantage will offset losses from the drop in Msif Advantage'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 |
| Msif Advantage vs. International Equity Portfolio | Msif Advantage vs. Municipal Bond Fund | Msif Advantage vs. Global Advantage Portfolio | Msif Advantage vs. Advantage 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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