Correlation Between Calamos Dynamic and Metropolitan West
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Metropolitan West 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 Metropolitan West 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 Metropolitan West Porate, you can compare the effects of market volatilities on Calamos Dynamic and Metropolitan West 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 Metropolitan West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Metropolitan West.
Diversification Opportunities for Calamos Dynamic and Metropolitan West
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Metropolitan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Metropolitan West Porate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan West Porate 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 Metropolitan West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolitan West Porate has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Metropolitan West go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Metropolitan West
If you would invest 2,431 in Calamos Dynamic Convertible on September 23, 2024 and sell it today you would earn a total of 34.00 from holding Calamos Dynamic Convertible or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Metropolitan West Porate
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Metropolitan West Porate |
Calamos Dynamic and Metropolitan West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Metropolitan West
The main advantage of trading using opposite Calamos Dynamic and Metropolitan West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Metropolitan West 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 Metropolitan West will offset losses from the drop in Metropolitan West's long position.| Calamos Dynamic vs. Munivest Fund | Calamos Dynamic vs. MFS High Income | Calamos Dynamic vs. Franklin Templeton Limited | Calamos Dynamic vs. Clough Global Ef |
| Metropolitan West vs. Advent Claymore Convertible | Metropolitan West vs. Rationalpier 88 Convertible | Metropolitan West vs. Calamos Dynamic Convertible | Metropolitan West vs. Absolute Convertible Arbitrage |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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