Correlation Between Calamos Dynamic and Pace Intermediate
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Pace Intermediate 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 Pace Intermediate 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 Pace Intermediate Fixed, you can compare the effects of market volatilities on Calamos Dynamic and Pace Intermediate 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 Pace Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Pace Intermediate.
Diversification Opportunities for Calamos Dynamic and Pace Intermediate
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Pace is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Pace Intermediate Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Intermediate Fixed 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 Pace Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Intermediate Fixed has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Pace Intermediate go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Pace Intermediate
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.84 times more return on investment than Pace Intermediate. However, Calamos Dynamic is 2.84 times more volatile than Pace Intermediate Fixed. It trades about 0.07 of its potential returns per unit of risk. Pace Intermediate Fixed is currently generating about 0.06 per unit of risk. If you would invest 1,684 in Calamos Dynamic Convertible on September 14, 2024 and sell it today you would earn a total of 712.00 from holding Calamos Dynamic Convertible or generate 42.28% 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. Pace Intermediate Fixed
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Pace Intermediate Fixed |
Calamos Dynamic and Pace Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Pace Intermediate
The main advantage of trading using opposite Calamos Dynamic and Pace Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Pace Intermediate 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 Pace Intermediate will offset losses from the drop in Pace Intermediate'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 |
| Pace Intermediate vs. Gabelli Convertible And | Pace Intermediate vs. Rationalpier 88 Convertible | Pace Intermediate vs. Advent Claymore Convertible | Pace Intermediate vs. Calamos Dynamic Convertible |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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