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 Equity, 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
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calamos and Large is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Large Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Equity 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 Equity 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 is expected to generate 2.84 times less return on investment than Large Cap. In addition to that, Calamos Dynamic is 1.47 times more volatile than Large Cap Equity. It trades about 0.05 of its total potential returns per unit of risk. Large Cap Equity is currently generating about 0.21 per unit of volatility. If you would invest 2,521 in Large Cap Equity on September 3, 2024 and sell it today you would earn a total of 241.00 from holding Large Cap Equity or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Large Cap Equity
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Large Cap Equity |
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. Transamerica Funds | Large Cap vs. Lind Capital Partners | Large Cap vs. Intermediate Term Tax Free Bond | Large Cap vs. Vanguard California Long Term |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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