Correlation Between Calamos Dynamic and Vanguard Total
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Vanguard Total 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 Total 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 Total Bond, you can compare the effects of market volatilities on Calamos Dynamic and Vanguard Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Vanguard Total.
Diversification Opportunities for Calamos Dynamic and Vanguard Total
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Vanguard is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Vanguard Total Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Bond 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Bond has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Vanguard Total go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Vanguard Total
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Vanguard Total. In addition to that, Calamos Dynamic is 2.95 times more volatile than Vanguard Total Bond. It trades about 0.0 of its total potential returns per unit of risk. Vanguard Total Bond is currently generating about 0.09 per unit of volatility. If you would invest 948.00 in Vanguard Total Bond on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Vanguard Total Bond or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Vanguard Total Bond
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Vanguard Total Bond |
Calamos Dynamic and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Vanguard Total
The main advantage of trading using opposite Calamos Dynamic and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Vanguard Total 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 Total will offset losses from the drop in Vanguard Total'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 Total vs. Calamos Dynamic Convertible | Vanguard Total vs. Putnam Convertible Incm Gwth | Vanguard Total vs. Columbia Vertible Securities | Vanguard Total vs. Absolute Convertible Arbitrage |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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