Correlation Between Calamos Dynamic and Meridian Equity
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Meridian Equity 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 Meridian Equity 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 Meridian Equity Income, you can compare the effects of market volatilities on Calamos Dynamic and Meridian Equity 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 Meridian Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Meridian Equity.
Diversification Opportunities for Calamos Dynamic and Meridian Equity
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Meridian is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Meridian Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Equity Income 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 Meridian Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Equity Income has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Meridian Equity go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Meridian Equity
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Meridian Equity. In addition to that, Calamos Dynamic is 2.33 times more volatile than Meridian Equity Income. It trades about -0.13 of its total potential returns per unit of risk. Meridian Equity Income is currently generating about 0.04 per unit of volatility. If you would invest 1,399 in Meridian Equity Income on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Meridian Equity Income or generate 0.71% 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. Meridian Equity Income
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Meridian Equity Income |
Calamos Dynamic and Meridian Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Meridian Equity
The main advantage of trading using opposite Calamos Dynamic and Meridian Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Meridian Equity 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 Meridian Equity will offset losses from the drop in Meridian Equity'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 |
| Meridian Equity vs. Gabelli Global Financial | Meridian Equity vs. Fidelity Advisor Financial | Meridian Equity vs. Prudential Jennison Financial | Meridian Equity vs. Transamerica Financial Life |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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