Correlation Between Calamos Dynamic and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Mainstay Epoch 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 Epoch 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 Epoch Small, you can compare the effects of market volatilities on Calamos Dynamic and Mainstay Epoch 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 Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Mainstay Epoch.
Diversification Opportunities for Calamos Dynamic and Mainstay Epoch
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Mainstay is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Mainstay Epoch Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Small 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 Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Small has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Mainstay Epoch
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Mainstay Epoch. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Dynamic Convertible is 1.2 times less risky than Mainstay Epoch. The fund trades about -0.22 of its potential returns per unit of risk. The Mainstay Epoch Small is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,079 in Mainstay Epoch Small on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Mainstay Epoch Small or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Mainstay Epoch Small
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Mainstay Epoch Small |
Calamos Dynamic and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Mainstay Epoch
The main advantage of trading using opposite Calamos Dynamic and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Mainstay Epoch 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 Epoch will offset losses from the drop in Mainstay Epoch'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 |
| Mainstay Epoch vs. Invesco Gold Special | Mainstay Epoch vs. Europac Gold Fund | Mainstay Epoch vs. Franklin Gold Precious | Mainstay Epoch vs. Great West Goldman Sachs |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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