Correlation Between Calamos Dynamic and Miller Opportunity
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Miller Opportunity 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 Miller Opportunity 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 Miller Opportunity Trust, you can compare the effects of market volatilities on Calamos Dynamic and Miller Opportunity 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 Miller Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Miller Opportunity.
Diversification Opportunities for Calamos Dynamic and Miller Opportunity
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Miller is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Miller Opportunity Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miller Opportunity Trust 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 Miller Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miller Opportunity Trust has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Miller Opportunity go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Miller Opportunity
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.63 times more return on investment than Miller Opportunity. However, Calamos Dynamic Convertible is 1.58 times less risky than Miller Opportunity. It trades about -0.08 of its potential returns per unit of risk. Miller Opportunity Trust is currently generating about -0.07 per unit of risk. If you would invest 2,397 in Calamos Dynamic Convertible on November 27, 2024 and sell it today you would lose (27.00) from holding Calamos Dynamic Convertible or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Miller Opportunity Trust
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Miller Opportunity Trust |
Calamos Dynamic and Miller Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Miller Opportunity
The main advantage of trading using opposite Calamos Dynamic and Miller Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Miller Opportunity 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 Miller Opportunity will offset losses from the drop in Miller Opportunity'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 |
| Miller Opportunity vs. Doubleline Emerging Markets | Miller Opportunity vs. Prudential Emerging Markets | Miller Opportunity vs. Jpmorgan Trust I | Miller Opportunity vs. T Rowe Price |
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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