Correlation Between Calamos Dynamic and Ab Small
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Ab Small 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 Ab Small 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 Ab Small Cap, you can compare the effects of market volatilities on Calamos Dynamic and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Ab Small.
Diversification Opportunities for Calamos Dynamic and Ab Small
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and SCCVX is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Ab Small go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Ab Small
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Ab Small. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Dynamic Convertible is 1.43 times less risky than Ab Small. The fund trades about -0.08 of its potential returns per unit of risk. The Ab Small Cap is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,402 in Ab Small Cap on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Ab Small Cap or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Ab Small Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Ab Small Cap |
Calamos Dynamic and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Ab Small
The main advantage of trading using opposite Calamos Dynamic and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small'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 |
| Ab Small vs. Small Cap Core | Ab Small vs. Aquagold International | Ab Small vs. Morningstar Unconstrained Allocation | Ab Small vs. Thrivent High Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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