Correlation Between Calamos Dynamic and Thornburg Developing
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Thornburg Developing 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 Thornburg Developing 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 Thornburg Developing World, you can compare the effects of market volatilities on Calamos Dynamic and Thornburg Developing 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 Thornburg Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Thornburg Developing.
Diversification Opportunities for Calamos Dynamic and Thornburg Developing
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Thornburg is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Thornburg Developing World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Developing 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 Thornburg Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Developing has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Thornburg Developing go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Thornburg Developing
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Thornburg Developing. In addition to that, Calamos Dynamic is 1.23 times more volatile than Thornburg Developing World. It trades about -0.22 of its total potential returns per unit of risk. Thornburg Developing World is currently generating about -0.07 per unit of volatility. If you would invest 2,267 in Thornburg Developing World on September 12, 2024 and sell it today you would lose (27.00) from holding Thornburg Developing World or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Thornburg Developing World
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Thornburg Developing |
Calamos Dynamic and Thornburg Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Thornburg Developing
The main advantage of trading using opposite Calamos Dynamic and Thornburg Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Thornburg Developing 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 Thornburg Developing will offset losses from the drop in Thornburg Developing'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 |
| Thornburg Developing vs. Alpsalerian Energy Infrastructure | Thornburg Developing vs. World Energy Fund | Thornburg Developing vs. Hennessy Bp Energy | Thornburg Developing vs. Gamco Natural Resources |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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