Correlation Between Calamos Dynamic and Schwab Target
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Schwab Target 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 Schwab Target 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 Schwab Target 2045, you can compare the effects of market volatilities on Calamos Dynamic and Schwab Target 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 Schwab Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Schwab Target.
Diversification Opportunities for Calamos Dynamic and Schwab Target
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Schwab is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Schwab Target 2045 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab Target 2045 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 Schwab Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab Target 2045 has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Schwab Target go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Schwab Target
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Schwab Target. In addition to that, Calamos Dynamic is 1.2 times more volatile than Schwab Target 2045. It trades about -0.02 of its total potential returns per unit of risk. Schwab Target 2045 is currently generating about 0.05 per unit of volatility. If you would invest 1,691 in Schwab Target 2045 on October 24, 2024 and sell it today you would earn a total of 13.00 from holding Schwab Target 2045 or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Schwab Target 2045
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Schwab Target 2045 |
Calamos Dynamic and Schwab Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Schwab Target
The main advantage of trading using opposite Calamos Dynamic and Schwab Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Schwab Target 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 Schwab Target will offset losses from the drop in Schwab Target'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 |
| Schwab Target vs. Virtus Convertible | Schwab Target vs. Putnam Convertible Securities | Schwab Target vs. Fidelity Sai Convertible | Schwab Target 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |