Correlation Between Calamos Dynamic and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Massmutual Premier 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 Massmutual Premier 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 Massmutual Premier Balanced, you can compare the effects of market volatilities on Calamos Dynamic and Massmutual Premier 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 Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Massmutual Premier.
Diversification Opportunities for Calamos Dynamic and Massmutual Premier
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Massmutual is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Massmutual Premier Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier 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 Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Massmutual Premier go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Massmutual Premier
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.51 times less return on investment than Massmutual Premier. In addition to that, Calamos Dynamic is 2.31 times more volatile than Massmutual Premier Balanced. It trades about 0.05 of its total potential returns per unit of risk. Massmutual Premier Balanced is currently generating about 0.18 per unit of volatility. If you would invest 1,263 in Massmutual Premier Balanced on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Massmutual Premier Balanced or generate 4.99% 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. Massmutual Premier Balanced
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Massmutual Premier |
Calamos Dynamic and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Massmutual Premier
The main advantage of trading using opposite Calamos Dynamic and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Massmutual Premier 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 Massmutual Premier will offset losses from the drop in Massmutual Premier'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 |
| Massmutual Premier vs. Gamco Natural Resources | Massmutual Premier vs. Oil Gas Ultrasector | Massmutual Premier vs. Alpsalerian Energy Infrastructure | Massmutual Premier vs. Franklin Natural Resources |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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