Correlation Between Calamos Dynamic and Moderately Aggressive
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Moderately Aggressive 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 Moderately Aggressive 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 Moderately Aggressive Balanced, you can compare the effects of market volatilities on Calamos Dynamic and Moderately Aggressive 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 Moderately Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Moderately Aggressive.
Diversification Opportunities for Calamos Dynamic and Moderately Aggressive
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Moderately is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Moderately Aggressive Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderately Aggressive 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 Moderately Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderately Aggressive has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Moderately Aggressive go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Moderately Aggressive
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Moderately Aggressive. In addition to that, Calamos Dynamic is 1.77 times more volatile than Moderately Aggressive Balanced. It trades about -0.15 of its total potential returns per unit of risk. Moderately Aggressive Balanced is currently generating about 0.07 per unit of volatility. If you would invest 1,245 in Moderately Aggressive Balanced on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Moderately Aggressive Balanced or generate 0.72% 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. Moderately Aggressive Balanced
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Moderately Aggressive |
Calamos Dynamic and Moderately Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Moderately Aggressive
The main advantage of trading using opposite Calamos Dynamic and Moderately Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Moderately Aggressive 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 Moderately Aggressive will offset losses from the drop in Moderately Aggressive'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 |
| Moderately Aggressive vs. Lord Abbett Convertible | Moderately Aggressive vs. Virtus Convertible | Moderately Aggressive vs. Rationalpier 88 Convertible | Moderately Aggressive vs. Calamos Dynamic 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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