Correlation Between Calamos Dynamic and Pear Tree
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Pear Tree 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 Pear Tree 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 Pear Tree Polaris, you can compare the effects of market volatilities on Calamos Dynamic and Pear Tree 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 Pear Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Pear Tree.
Diversification Opportunities for Calamos Dynamic and Pear Tree
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Pear is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Pear Tree Polaris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pear Tree Polaris 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 Pear Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pear Tree Polaris has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Pear Tree go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Pear Tree
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.73 times more return on investment than Pear Tree. However, Calamos Dynamic is 1.73 times more volatile than Pear Tree Polaris. It trades about -0.04 of its potential returns per unit of risk. Pear Tree Polaris is currently generating about -0.22 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Pear Tree Polaris
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Pear Tree Polaris |
Calamos Dynamic and Pear Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Pear Tree
The main advantage of trading using opposite Calamos Dynamic and Pear Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Pear Tree 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 Pear Tree will offset losses from the drop in Pear Tree'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 |
| Pear Tree vs. Columbia Vertible Securities | Pear Tree vs. Fidelity Sai Convertible | Pear Tree vs. Calamos Dynamic Convertible | Pear Tree vs. Virtus Convertible |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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