Correlation Between Calamos Dynamic and Mesirow Financial
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Mesirow Financial 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 Mesirow Financial 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 Mesirow Financial Small, you can compare the effects of market volatilities on Calamos Dynamic and Mesirow Financial 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 Mesirow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Mesirow Financial.
Diversification Opportunities for Calamos Dynamic and Mesirow Financial
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Mesirow is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Mesirow Financial Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesirow Financial 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 Mesirow Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesirow Financial Small has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Mesirow Financial go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Mesirow Financial
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.8 times less return on investment than Mesirow Financial. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.02 times less risky than Mesirow Financial. It trades about 0.13 of its potential returns per unit of risk. Mesirow Financial Small is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Mesirow Financial Small on November 9, 2024 and sell it today you would earn a total of 53.00 from holding Mesirow Financial Small or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Mesirow Financial Small
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Mesirow Financial Small |
Calamos Dynamic and Mesirow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Mesirow Financial
The main advantage of trading using opposite Calamos Dynamic and Mesirow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Mesirow Financial 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 Mesirow Financial will offset losses from the drop in Mesirow Financial'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 |
| Mesirow Financial vs. Fwnhtx | Mesirow Financial vs. Wabmsx | Mesirow Financial vs. Arrow Managed Futures | Mesirow Financial vs. Fkhemx |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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