Correlation Between Calamos Dynamic and Salient Alternative
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Salient Alternative 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 Salient Alternative 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 Salient Alternative Beta, you can compare the effects of market volatilities on Calamos Dynamic and Salient Alternative 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 Salient Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Salient Alternative.
Diversification Opportunities for Calamos Dynamic and Salient Alternative
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Salient is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Salient Alternative Beta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Alternative Beta 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 Salient Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Alternative Beta has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Salient Alternative go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Salient Alternative
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.68 times more return on investment than Salient Alternative. However, Calamos Dynamic is 1.68 times more volatile than Salient Alternative Beta. It trades about 0.05 of its potential returns per unit of risk. Salient Alternative Beta is currently generating about 0.07 per unit of risk. If you would invest 1,882 in Calamos Dynamic Convertible on November 1, 2024 and sell it today you would earn a total of 526.00 from holding Calamos Dynamic Convertible or generate 27.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Salient Alternative Beta
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Salient Alternative Beta |
Calamos Dynamic and Salient Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Salient Alternative
The main advantage of trading using opposite Calamos Dynamic and Salient Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Salient Alternative 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 Salient Alternative will offset losses from the drop in Salient Alternative'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 |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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