Correlation Between Calamos Dynamic and Wcm Focused
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Wcm Focused 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 Wcm Focused 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 Wcm Focused Emerging, you can compare the effects of market volatilities on Calamos Dynamic and Wcm Focused 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 Wcm Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Wcm Focused.
Diversification Opportunities for Calamos Dynamic and Wcm Focused
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Wcm is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Wcm Focused Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wcm Focused Emerging 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 Wcm Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wcm Focused Emerging has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Wcm Focused go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Wcm Focused
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Wcm Focused. In addition to that, Calamos Dynamic is 1.33 times more volatile than Wcm Focused Emerging. It trades about -0.19 of its total potential returns per unit of risk. Wcm Focused Emerging is currently generating about 0.03 per unit of volatility. If you would invest 1,534 in Wcm Focused Emerging on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Wcm Focused Emerging or generate 0.33% 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. Wcm Focused Emerging
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Wcm Focused Emerging |
Calamos Dynamic and Wcm Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Wcm Focused
The main advantage of trading using opposite Calamos Dynamic and Wcm Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Wcm Focused 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 Wcm Focused will offset losses from the drop in Wcm Focused'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 |
| Wcm Focused vs. Delaware Healthcare Fund | Wcm Focused vs. Invesco Global Health | Wcm Focused vs. Hartford Healthcare Hls | Wcm Focused vs. Baron Health Care |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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