Correlation Between Calamos Dynamic and Payden Emerging
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Payden 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 Payden 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 Payden Emerging Markets, you can compare the effects of market volatilities on Calamos Dynamic and Payden 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 Payden Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Payden Emerging.
Diversification Opportunities for Calamos Dynamic and Payden Emerging
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Payden is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Payden Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden 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 Payden Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Emerging Markets has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Payden Emerging go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Payden Emerging
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Payden Emerging. In addition to that, Calamos Dynamic is 9.75 times more volatile than Payden Emerging Markets. It trades about -0.15 of its total potential returns per unit of risk. Payden Emerging Markets is currently generating about 0.47 per unit of volatility. If you would invest 878.00 in Payden Emerging Markets on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Payden Emerging Markets or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Payden Emerging Markets
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Payden Emerging Markets |
Calamos Dynamic and Payden Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Payden Emerging
The main advantage of trading using opposite Calamos Dynamic and Payden Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Payden 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 Payden Emerging will offset losses from the drop in Payden 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 |
| Payden Emerging vs. Mfs Technology Fund | Payden Emerging vs. Vanguard Information Technology | Payden Emerging vs. Columbia Global Technology | Payden Emerging vs. Firsthand Technology Opportunities |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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