Correlation Between Calamos Dynamic and Blrc Sgy
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Blrc Sgy 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 Blrc Sgy 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 Blrc Sgy Mnp, you can compare the effects of market volatilities on Calamos Dynamic and Blrc Sgy 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 Blrc Sgy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Blrc Sgy.
Diversification Opportunities for Calamos Dynamic and Blrc Sgy
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Blrc is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Blrc Sgy Mnp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blrc Sgy Mnp 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 Blrc Sgy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blrc Sgy Mnp has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Blrc Sgy go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Blrc Sgy
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 3.92 times more return on investment than Blrc Sgy. However, Calamos Dynamic is 3.92 times more volatile than Blrc Sgy Mnp. It trades about 0.14 of its potential returns per unit of risk. Blrc Sgy Mnp is currently generating about 0.16 per unit of risk. If you would invest 1,629 in Calamos Dynamic Convertible on September 1, 2024 and sell it today you would earn a total of 748.00 from holding Calamos Dynamic Convertible or generate 45.92% 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. Blrc Sgy Mnp
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Blrc Sgy Mnp |
Calamos Dynamic and Blrc Sgy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Blrc Sgy
The main advantage of trading using opposite Calamos Dynamic and Blrc Sgy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Blrc Sgy 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 Blrc Sgy will offset losses from the drop in Blrc Sgy'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 |
| Blrc Sgy vs. Blackrock California Municipal | Blrc Sgy vs. Blackrock Balanced Capital | Blrc Sgy vs. Blackrock Eurofund Class | Blrc Sgy vs. Blackrock Funds |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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