Correlation Between Calamos Dynamic and Foreign Value
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Foreign Value 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 Foreign Value 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 Foreign Value Fund, you can compare the effects of market volatilities on Calamos Dynamic and Foreign Value 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 Foreign Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Foreign Value.
Diversification Opportunities for Calamos Dynamic and Foreign Value
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Foreign is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Foreign Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foreign Value 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 Foreign Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foreign Value has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Foreign Value go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Foreign Value
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.37 times more return on investment than Foreign Value. However, Calamos Dynamic is 1.37 times more volatile than Foreign Value Fund. It trades about 0.13 of its potential returns per unit of risk. Foreign Value Fund is currently generating about 0.08 per unit of risk. If you would invest 1,729 in Calamos Dynamic Convertible on September 4, 2024 and sell it today you would earn a total of 661.00 from holding Calamos Dynamic Convertible or generate 38.23% 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. Foreign Value Fund
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Foreign Value |
Calamos Dynamic and Foreign Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Foreign Value
The main advantage of trading using opposite Calamos Dynamic and Foreign Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Foreign Value 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 Foreign Value will offset losses from the drop in Foreign Value'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 |
| Foreign Value vs. Franklin Adjustable Government | Foreign Value vs. Us Government Securities | Foreign Value vs. Aig Government Money | Foreign Value vs. Dunham Porategovernment Bond |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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