Correlation Between Calamos Dynamic and Pax Esg
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Pax Esg 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 Pax Esg 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 Pax Esg Beta, you can compare the effects of market volatilities on Calamos Dynamic and Pax Esg 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 Pax Esg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Pax Esg.
Diversification Opportunities for Calamos Dynamic and Pax Esg
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Pax is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Pax Esg Beta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pax Esg Beta 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 Pax Esg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pax Esg Beta has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Pax Esg go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Pax Esg
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.74 times more return on investment than Pax Esg. However, Calamos Dynamic Convertible is 1.34 times less risky than Pax Esg. It trades about 0.02 of its potential returns per unit of risk. Pax Esg Beta is currently generating about -0.07 per unit of risk. If you would invest 2,264 in Calamos Dynamic Convertible on November 28, 2024 and sell it today you would earn a total of 47.00 from holding Calamos Dynamic Convertible or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Pax Esg Beta
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Pax Esg Beta |
Calamos Dynamic and Pax Esg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Pax Esg
The main advantage of trading using opposite Calamos Dynamic and Pax Esg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Pax Esg 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 Pax Esg will offset losses from the drop in Pax Esg'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 |
| Pax Esg vs. Transamerica International Small | Pax Esg vs. Legg Mason Partners | Pax Esg vs. Ep Emerging Markets | Pax Esg vs. Small Pany Growth |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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