Correlation Between Calamos Dynamic and Origin Emerging
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Origin Emerging 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 Origin Emerging 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 Origin Emerging Markets, you can compare the effects of market volatilities on Calamos Dynamic and Origin Emerging 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 Origin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Origin Emerging.
Diversification Opportunities for Calamos Dynamic and Origin Emerging
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Origin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Origin Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Emerging Markets 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 Origin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Emerging Markets has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Origin Emerging go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Origin Emerging
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.21 times more return on investment than Origin Emerging. However, Calamos Dynamic is 1.21 times more volatile than Origin Emerging Markets. It trades about -0.04 of its potential returns per unit of risk. Origin Emerging Markets is currently generating about -0.07 per unit of risk. If you would invest 2,393 in Calamos Dynamic Convertible on August 31, 2024 and sell it today you would lose (25.00) from holding Calamos Dynamic Convertible or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Origin Emerging Markets
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Origin Emerging Markets |
Calamos Dynamic and Origin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Origin Emerging
The main advantage of trading using opposite Calamos Dynamic and Origin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Origin Emerging 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 Origin Emerging will offset losses from the drop in Origin Emerging'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 |
| Origin Emerging vs. Pear Tree Polaris | Origin Emerging vs. Artisan High Income | Origin Emerging vs. HUMANA INC | Origin Emerging vs. Aquagold International |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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