Correlation Between Calamos Dynamic and Oberweis China
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Oberweis China 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 Oberweis China 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 Oberweis China Opportunities, you can compare the effects of market volatilities on Calamos Dynamic and Oberweis China 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 Oberweis China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Oberweis China.
Diversification Opportunities for Calamos Dynamic and Oberweis China
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Oberweis is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Oberweis China Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis China Oppor 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 Oberweis China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis China Oppor has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Oberweis China go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Oberweis China
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.46 times less return on investment than Oberweis China. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.73 times less risky than Oberweis China. It trades about 0.07 of its potential returns per unit of risk. Oberweis China Opportunities is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 702.00 in Oberweis China Opportunities on November 28, 2024 and sell it today you would earn a total of 110.00 from holding Oberweis China Opportunities or generate 15.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Oberweis China Opportunities
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Oberweis China Oppor |
Calamos Dynamic and Oberweis China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Oberweis China
The main advantage of trading using opposite Calamos Dynamic and Oberweis China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Oberweis China 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 Oberweis China will offset losses from the drop in Oberweis China'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 |
| Oberweis China vs. Gmo High Yield | Oberweis China vs. Goldman Sachs High | Oberweis China vs. Access Flex High | Oberweis China vs. Ab High Income |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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