Correlation Between Calamos Dynamic and Madison Core
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Madison Core 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 Madison Core 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 Madison E Bond, you can compare the effects of market volatilities on Calamos Dynamic and Madison Core 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 Madison Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Madison Core.
Diversification Opportunities for Calamos Dynamic and Madison Core
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Madison is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Madison E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison E Bond 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 Madison Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison E Bond has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Madison Core go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Madison Core
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Madison Core. In addition to that, Calamos Dynamic is 3.26 times more volatile than Madison E Bond. It trades about -0.04 of its total potential returns per unit of risk. Madison E Bond is currently generating about 0.0 per unit of volatility. If you would invest 892.00 in Madison E Bond on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Madison E Bond or generate 0.0% 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. Madison E Bond
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Madison E Bond |
Calamos Dynamic and Madison Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Madison Core
The main advantage of trading using opposite Calamos Dynamic and Madison Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Madison Core 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 Madison Core will offset losses from the drop in Madison Core'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 |
| Madison Core vs. Madison Mid Cap | Madison Core vs. Madison Moderate Allocation | Madison Core vs. Madison Moderate Allocation | Madison Core vs. Madison Investors Fund |
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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