Correlation Between Calamos Dynamic and Versatile Bond
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Versatile Bond 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 Versatile Bond 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 Versatile Bond Portfolio, you can compare the effects of market volatilities on Calamos Dynamic and Versatile Bond 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 Versatile Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Versatile Bond.
Diversification Opportunities for Calamos Dynamic and Versatile Bond
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Versatile is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Versatile Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Versatile Bond Portfolio 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 Versatile Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Versatile Bond Portfolio has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Versatile Bond go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Versatile Bond
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 8.0 times more return on investment than Versatile Bond. However, Calamos Dynamic is 8.0 times more volatile than Versatile Bond Portfolio. It trades about 0.12 of its potential returns per unit of risk. Versatile Bond Portfolio is currently generating about 0.21 per unit of risk. If you would invest 1,657 in Calamos Dynamic Convertible on September 4, 2024 and sell it today you would earn a total of 720.00 from holding Calamos Dynamic Convertible or generate 43.45% 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. Versatile Bond Portfolio
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Versatile Bond Portfolio |
Calamos Dynamic and Versatile Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Versatile Bond
The main advantage of trading using opposite Calamos Dynamic and Versatile Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Versatile Bond 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 Versatile Bond will offset losses from the drop in Versatile Bond'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 |
| Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. Short Term Treasury Portfolio |
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 CEOs Directory module to screen CEOs from public companies around the world.
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