Correlation Between Calamos Dynamic and Western Asset
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Western Asset 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 Western Asset 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 Western Asset Managed, you can compare the effects of market volatilities on Calamos Dynamic and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Western Asset.
Diversification Opportunities for Calamos Dynamic and Western Asset
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Western is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Western Asset Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Managed 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Managed has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Western Asset go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Western Asset
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Western Asset. In addition to that, Calamos Dynamic is 3.19 times more volatile than Western Asset Managed. It trades about -0.04 of its total potential returns per unit of risk. Western Asset Managed is currently generating about 0.17 per unit of volatility. If you would invest 1,500 in Western Asset Managed on August 31, 2024 and sell it today you would earn a total of 19.00 from holding Western Asset Managed or generate 1.27% 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. Western Asset Managed
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Western Asset Managed |
Calamos Dynamic and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Western Asset
The main advantage of trading using opposite Calamos Dynamic and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Rationalpier 88 Convertible | Western Asset vs. Columbia Vertible Securities | Western Asset vs. Calamos Dynamic Convertible | Western Asset vs. Fidelity Sai 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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