Correlation Between Calamos Dynamic and Guggenheim High

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Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Guggenheim High 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 Guggenheim High 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 Guggenheim High Yield, you can compare the effects of market volatilities on Calamos Dynamic and Guggenheim High 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 Guggenheim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Guggenheim High.

Diversification Opportunities for Calamos Dynamic and Guggenheim High

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Calamos and Guggenheim is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Guggenheim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim High Yield 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 Guggenheim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim High Yield has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Guggenheim High go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Guggenheim High

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Guggenheim High. In addition to that, Calamos Dynamic is 8.65 times more volatile than Guggenheim High Yield. It trades about 0.0 of its total potential returns per unit of risk. Guggenheim High Yield is currently generating about 0.17 per unit of volatility. If you would invest  1,006  in Guggenheim High Yield on September 1, 2024 and sell it today you would earn a total of  5.00  from holding Guggenheim High Yield or generate 0.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Calamos Dynamic Convertible  vs.  Guggenheim High Yield

 Performance 
       Timeline  
Calamos Dynamic Conv 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dynamic Convertible are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
Guggenheim High Yield 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim High Yield are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Guggenheim High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Dynamic and Guggenheim High Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calamos Dynamic and Guggenheim High

The main advantage of trading using opposite Calamos Dynamic and Guggenheim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Guggenheim High 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 Guggenheim High will offset losses from the drop in Guggenheim High's long position.
The idea behind Calamos Dynamic Convertible and Guggenheim High Yield pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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