Correlation Between Calamos Dynamic and Large Cap
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Large Cap 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 Large Cap 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 Large Cap Value, you can compare the effects of market volatilities on Calamos Dynamic and Large Cap 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 Large Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Large Cap.
Diversification Opportunities for Calamos Dynamic and Large Cap
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Large is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Large Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Value 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 Large Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap Value has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Large Cap go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Large Cap
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.84 times more return on investment than Large Cap. However, Calamos Dynamic Convertible is 1.19 times less risky than Large Cap. It trades about 0.07 of its potential returns per unit of risk. Large Cap Value is currently generating about 0.01 per unit of risk. If you would invest 1,684 in Calamos Dynamic Convertible on September 12, 2024 and sell it today you would earn a total of 697.00 from holding Calamos Dynamic Convertible or generate 41.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Large Cap Value
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Large Cap Value |
Calamos Dynamic and Large Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Large Cap
The main advantage of trading using opposite Calamos Dynamic and Large Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Large Cap 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 Large Cap will offset losses from the drop in Large Cap'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 |
| Large Cap vs. Fidelity Sai Convertible | Large Cap vs. Advent Claymore Convertible | Large Cap vs. Absolute Convertible Arbitrage | Large Cap 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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