Correlation Between Calamos Dynamic and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Mainstay Balanced 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 Mainstay Balanced 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 Mainstay Balanced Fund, you can compare the effects of market volatilities on Calamos Dynamic and Mainstay Balanced 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 Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Mainstay Balanced.
Diversification Opportunities for Calamos Dynamic and Mainstay Balanced
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Mainstay is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Mainstay Balanced
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Mainstay Balanced. In addition to that, Calamos Dynamic is 2.1 times more volatile than Mainstay Balanced Fund. It trades about -0.05 of its total potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.24 per unit of volatility. If you would invest 3,214 in Mainstay Balanced Fund on August 30, 2024 and sell it today you would earn a total of 88.00 from holding Mainstay Balanced Fund or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Mainstay Balanced |
Calamos Dynamic and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Mainstay Balanced
The main advantage of trading using opposite Calamos Dynamic and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Mainstay Balanced 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 Mainstay Balanced will offset losses from the drop in Mainstay Balanced's long position.| Calamos Dynamic vs. Calamos LongShort Equity | Calamos Dynamic vs. Calamos Convertible And | Calamos Dynamic vs. Calamos Global Total | Calamos Dynamic vs. DTF Tax Free |
| Mainstay Balanced vs. Pace High Yield | Mainstay Balanced vs. Vanguard High Yield Tax Exempt | Mainstay Balanced vs. Strategic Allocation Aggressive | Mainstay Balanced vs. Ppm High Yield |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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