Correlation Between Calamos Dynamic and Financial Services
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Financial Services 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 Financial Services 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 Financial Services Fund, you can compare the effects of market volatilities on Calamos Dynamic and Financial Services 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 Financial Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Financial Services.
Diversification Opportunities for Calamos Dynamic and Financial Services
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Financial is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Financial Services Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Services 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 Financial Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Services has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Financial Services go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Financial Services
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.41 times less return on investment than Financial Services. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.97 times less risky than Financial Services. It trades about 0.06 of its potential returns per unit of risk. Financial Services Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,167 in Financial Services Fund on September 4, 2024 and sell it today you would earn a total of 2,269 from holding Financial Services Fund or generate 43.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Financial Services Fund
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Financial Services |
Calamos Dynamic and Financial Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Financial Services
The main advantage of trading using opposite Calamos Dynamic and Financial Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Financial Services 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 Financial Services will offset losses from the drop in Financial Services' 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 |
| Financial Services vs. Health Care Fund | Financial Services vs. Banking Fund Investor | Financial Services vs. Technology Fund Investor | Financial Services vs. Transportation Fund Investor |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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