Correlation Between Calamos Dynamic and American Beacon
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and American Beacon 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 American Beacon 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 American Beacon Twentyfour, you can compare the effects of market volatilities on Calamos Dynamic and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and American Beacon.
Diversification Opportunities for Calamos Dynamic and American Beacon
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and American is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and American Beacon Twentyfour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Twen 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Twen has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and American Beacon go up and down completely randomly.
Pair Corralation between Calamos Dynamic and American Beacon
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 7.72 times more return on investment than American Beacon. However, Calamos Dynamic is 7.72 times more volatile than American Beacon Twentyfour. It trades about 0.07 of its potential returns per unit of risk. American Beacon Twentyfour is currently generating about 0.15 per unit of risk. If you would invest 2,433 in Calamos Dynamic Convertible on November 7, 2024 and sell it today you would earn a total of 30.00 from holding Calamos Dynamic Convertible or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. American Beacon Twentyfour
Performance |
| Timeline |
| Calamos Dynamic Conv |
| American Beacon Twen |
Calamos Dynamic and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and American Beacon
The main advantage of trading using opposite Calamos Dynamic and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon'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 |
| American Beacon vs. Voya Retirement Servative | American Beacon vs. Franklin Lifesmart Retirement | American Beacon vs. Retirement Living Through | American Beacon vs. American Funds Retirement |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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