Correlation Between Calamos Dynamic and Pimco Long
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Pimco Long 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 Pimco Long 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 Pimco Long Duration, you can compare the effects of market volatilities on Calamos Dynamic and Pimco Long 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 Pimco Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Pimco Long.
Diversification Opportunities for Calamos Dynamic and Pimco Long
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Pimco is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Pimco Long Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Long Duration 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 Pimco Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Long Duration has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Pimco Long go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Pimco Long
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Pimco Long. In addition to that, Calamos Dynamic is 1.26 times more volatile than Pimco Long Duration. It trades about -0.19 of its total potential returns per unit of risk. Pimco Long Duration is currently generating about 0.24 per unit of volatility. If you would invest 702.00 in Pimco Long Duration on November 28, 2024 and sell it today you would earn a total of 25.00 from holding Pimco Long Duration or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Pimco Long Duration
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Pimco Long Duration |
Calamos Dynamic and Pimco Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Pimco Long
The main advantage of trading using opposite Calamos Dynamic and Pimco Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Pimco Long 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 Pimco Long will offset losses from the drop in Pimco Long'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 |
| Pimco Long vs. Payden High Income | Pimco Long vs. T Rowe Price | Pimco Long vs. Pace High Yield | Pimco Long vs. City National Rochdale |
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 Stocks Directory module to find actively traded stocks across global markets.
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