Correlation Between Calamos Dynamic and Monthly Rebalance
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Monthly Rebalance 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 Monthly Rebalance 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 Monthly Rebalance Nasdaq 100, you can compare the effects of market volatilities on Calamos Dynamic and Monthly Rebalance 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 Monthly Rebalance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Monthly Rebalance.
Diversification Opportunities for Calamos Dynamic and Monthly Rebalance
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Monthly is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Monthly Rebalance Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monthly Rebalance 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 Monthly Rebalance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monthly Rebalance has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Monthly Rebalance go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Monthly Rebalance
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 3.56 times less return on investment than Monthly Rebalance. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 2.09 times less risky than Monthly Rebalance. It trades about 0.06 of its potential returns per unit of risk. Monthly Rebalance Nasdaq 100 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 27,692 in Monthly Rebalance Nasdaq 100 on August 27, 2024 and sell it today you would earn a total of 36,584 from holding Monthly Rebalance Nasdaq 100 or generate 132.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Monthly Rebalance Nasdaq 100
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Monthly Rebalance |
Calamos Dynamic and Monthly Rebalance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Monthly Rebalance
The main advantage of trading using opposite Calamos Dynamic and Monthly Rebalance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Monthly Rebalance 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 Monthly Rebalance will offset losses from the drop in Monthly Rebalance'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 |
| Monthly Rebalance vs. Direxion Monthly Nasdaq 100 | Monthly Rebalance vs. Ultranasdaq 100 Profund Ultranasdaq 100 | Monthly Rebalance vs. Dow 2x Strategy |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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