Correlation Between Calamos Dynamic and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Mid 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 Mid 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 Mid Cap Strategic, you can compare the effects of market volatilities on Calamos Dynamic and Mid 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Mid Cap.
Diversification Opportunities for Calamos Dynamic and Mid Cap
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Mid is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Mid Cap Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Strategic 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Strategic has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Mid Cap go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Mid Cap
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.11 times more return on investment than Mid Cap. However, Calamos Dynamic is 1.11 times more volatile than Mid Cap Strategic. It trades about 0.13 of its potential returns per unit of risk. Mid Cap Strategic is currently generating about 0.13 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Mid Cap Strategic
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Mid Cap Strategic |
Calamos Dynamic and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Mid Cap
The main advantage of trading using opposite Calamos Dynamic and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Mid 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 Mid Cap will offset losses from the drop in Mid 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 |
| Mid Cap vs. Jpmorgan Emerging Markets | Mid Cap vs. Ep Emerging Markets | Mid Cap vs. Templeton Developing Markets | Mid Cap vs. Morgan Stanley Emerging |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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