Correlation Between Calamos Dynamic and Rational/pier
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Rational/pier 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 Rational/pier 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 Rationalpier 88 Convertible, you can compare the effects of market volatilities on Calamos Dynamic and Rational/pier 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 Rational/pier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Rational/pier.
Diversification Opportunities for Calamos Dynamic and Rational/pier
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Rational/pier is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Rationalpier 88 Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rationalpier 88 Conv 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 Rational/pier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rationalpier 88 Conv has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Rational/pier go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Rational/pier
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 6.71 times less return on investment than Rational/pier. In addition to that, Calamos Dynamic is 1.93 times more volatile than Rationalpier 88 Convertible. It trades about 0.02 of its total potential returns per unit of risk. Rationalpier 88 Convertible is currently generating about 0.32 per unit of volatility. If you would invest 1,110 in Rationalpier 88 Convertible on August 27, 2024 and sell it today you would earn a total of 38.00 from holding Rationalpier 88 Convertible or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Rationalpier 88 Convertible
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Rationalpier 88 Conv |
Calamos Dynamic and Rational/pier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Rational/pier
The main advantage of trading using opposite Calamos Dynamic and Rational/pier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Rational/pier 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 Rational/pier will offset losses from the drop in Rational/pier'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 |
| Rational/pier vs. Pnc Emerging Markets | Rational/pier vs. Origin Emerging Markets | Rational/pier vs. Siit Emerging Markets | Rational/pier vs. Western Assets Emerging |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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