Correlation Between Calamos Dynamic and Principal Lifetime
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Principal Lifetime 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 Principal Lifetime 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 Principal Lifetime 2050, you can compare the effects of market volatilities on Calamos Dynamic and Principal Lifetime 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 Principal Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Principal Lifetime.
Diversification Opportunities for Calamos Dynamic and Principal Lifetime
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Principal is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Principal Lifetime 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Principal Lifetime 2050 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 Principal Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Principal Lifetime 2050 has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Principal Lifetime go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Principal Lifetime
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.3 times more return on investment than Principal Lifetime. However, Calamos Dynamic is 1.3 times more volatile than Principal Lifetime 2050. It trades about 0.06 of its potential returns per unit of risk. Principal Lifetime 2050 is currently generating about 0.05 per unit of risk. If you would invest 1,757 in Calamos Dynamic Convertible on September 3, 2024 and sell it today you would earn a total of 620.00 from holding Calamos Dynamic Convertible or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Principal Lifetime 2050
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Principal Lifetime 2050 |
Calamos Dynamic and Principal Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Principal Lifetime
The main advantage of trading using opposite Calamos Dynamic and Principal Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Principal Lifetime 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 Principal Lifetime will offset losses from the drop in Principal Lifetime'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 |
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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