Correlation Between Calamos Dynamic and Northern Small
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Northern Small 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 Northern Small 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 Northern Small Cap, you can compare the effects of market volatilities on Calamos Dynamic and Northern Small 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 Northern Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Northern Small.
Diversification Opportunities for Calamos Dynamic and Northern Small
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Northern is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Northern Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Small Cap 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 Northern Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Small Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Northern Small go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Northern Small
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 27.16 times less return on investment than Northern Small. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.11 times less risky than Northern Small. It trades about 0.0 of its potential returns per unit of risk. Northern Small Cap is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,415 in Northern Small Cap on November 6, 2024 and sell it today you would earn a total of 26.00 from holding Northern Small Cap or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Northern Small Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Northern Small Cap |
Calamos Dynamic and Northern Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Northern Small
The main advantage of trading using opposite Calamos Dynamic and Northern Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Northern Small 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 Northern Small will offset losses from the drop in Northern Small'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 |
| Northern Small vs. Pace Municipal Fixed | Northern Small vs. Jpmorgan Ultra Short Municipal | Northern Small vs. T Rowe Price | Northern Small vs. Hartford Municipal Short |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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