Correlation Between Calamos Dynamic and Vanguard Short-term
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Vanguard Short-term 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 Vanguard Short-term 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 Vanguard Short Term Treasury, you can compare the effects of market volatilities on Calamos Dynamic and Vanguard Short-term 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 Vanguard Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Vanguard Short-term.
Diversification Opportunities for Calamos Dynamic and Vanguard Short-term
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Vanguard is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Vanguard Short Term Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Short Term 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 Vanguard Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Short Term has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Vanguard Short-term go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Vanguard Short-term
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 5.51 times more return on investment than Vanguard Short-term. However, Calamos Dynamic is 5.51 times more volatile than Vanguard Short Term Treasury. It trades about 0.06 of its potential returns per unit of risk. Vanguard Short Term Treasury is currently generating about 0.07 per unit of risk. If you would invest 1,757 in Calamos Dynamic Convertible on August 31, 2024 and sell it today you would earn a total of 611.00 from holding Calamos Dynamic Convertible or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Vanguard Short Term Treasury
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Vanguard Short Term |
Calamos Dynamic and Vanguard Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Vanguard Short-term
The main advantage of trading using opposite Calamos Dynamic and Vanguard Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Vanguard Short-term 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 Vanguard Short-term will offset losses from the drop in Vanguard Short-term'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 |
| Vanguard Short-term vs. Rationalpier 88 Convertible | Vanguard Short-term vs. Versatile Bond Portfolio | Vanguard Short-term vs. Multisector Bond Sma | Vanguard Short-term 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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