Correlation Between Calamos Dynamic and Victory Incore
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Victory Incore 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 Victory Incore 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 Victory Incore Investment, you can compare the effects of market volatilities on Calamos Dynamic and Victory Incore 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 Victory Incore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Victory Incore.
Diversification Opportunities for Calamos Dynamic and Victory Incore
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Victory is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Victory Incore Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Incore Investment 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 Victory Incore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Incore Investment has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Victory Incore go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Victory Incore
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.58 times more return on investment than Victory Incore. However, Calamos Dynamic is 2.58 times more volatile than Victory Incore Investment. It trades about 0.07 of its potential returns per unit of risk. Victory Incore Investment is currently generating about 0.08 per unit of risk. If you would invest 1,768 in Calamos Dynamic Convertible on August 26, 2024 and sell it today you would earn a total of 683.00 from holding Calamos Dynamic Convertible or generate 38.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Victory Incore Investment
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Victory Incore Investment |
Calamos Dynamic and Victory Incore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Victory Incore
The main advantage of trading using opposite Calamos Dynamic and Victory Incore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Victory Incore 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 Victory Incore will offset losses from the drop in Victory Incore'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 |
| Victory Incore vs. Victory Strategic Allocation | Victory Incore vs. Victory Special Value | Victory Incore vs. Victory Diversified Stock | Victory Incore vs. Northern Income 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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