Correlation Between Calamos Dynamic and City National
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Calamos Dynamic and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and City National.
Diversification Opportunities for Calamos Dynamic and City National
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and City is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and City National go up and down completely randomly.
Pair Corralation between Calamos Dynamic and City National
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.76 times less return on investment than City National. In addition to that, Calamos Dynamic is 1.43 times more volatile than City National Rochdale. It trades about 0.07 of its total potential returns per unit of risk. City National Rochdale is currently generating about 0.19 per unit of volatility. If you would invest 3,397 in City National Rochdale on September 3, 2024 and sell it today you would earn a total of 695.00 from holding City National Rochdale or generate 20.46% 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. City National Rochdale
Performance |
| Timeline |
| Calamos Dynamic Conv |
| City National Rochdale |
Calamos Dynamic and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and City National
The main advantage of trading using opposite Calamos Dynamic and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, City National 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 City National will offset losses from the drop in City National'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 |
| City National vs. The Gabelli Small | City National vs. Jhancock Diversified Macro | City National vs. Wasatch Small Cap | City National vs. Tiaa Cref Smallmid Cap 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 Stocks Directory module to find actively traded stocks across global markets.
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