Correlation Between Calamos Dynamic and Oakmark Equity
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Oakmark 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 Oakmark 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 Oakmark Equity And, you can compare the effects of market volatilities on Calamos Dynamic and Oakmark 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 Oakmark Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Oakmark Equity.
Diversification Opportunities for Calamos Dynamic and Oakmark Equity
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Oakmark is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Oakmark Equity And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Equity And 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 Oakmark Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Equity And has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Oakmark Equity go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Oakmark Equity
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.94 times more return on investment than Oakmark Equity. However, Calamos Dynamic is 1.94 times more volatile than Oakmark Equity And. It trades about 0.09 of its potential returns per unit of risk. Oakmark Equity And is currently generating about 0.14 per unit of risk. If you would invest 2,123 in Calamos Dynamic Convertible on September 1, 2024 and sell it today you would earn a total of 254.00 from holding Calamos Dynamic Convertible or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Oakmark Equity And
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Oakmark Equity And |
Calamos Dynamic and Oakmark Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Oakmark Equity
The main advantage of trading using opposite Calamos Dynamic and Oakmark Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Oakmark 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 Oakmark Equity will offset losses from the drop in Oakmark 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 |
| Oakmark Equity vs. Oakmark International Fund | Oakmark Equity vs. Oakmark Fund Advisor | Oakmark Equity vs. Oakmark Select Fund | Oakmark Equity vs. Oakmark Global Select |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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