Correlation Between Calamos Dynamic and Wasatch Small
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Wasatch Small 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 Wasatch Small 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 Wasatch Small Cap, you can compare the effects of market volatilities on Calamos Dynamic and Wasatch Small 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 Wasatch Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Wasatch Small.
Diversification Opportunities for Calamos Dynamic and Wasatch Small
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Wasatch is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Wasatch Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Small Cap 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 Wasatch Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Small Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Wasatch Small go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Wasatch Small
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 13.81 times less return on investment than Wasatch Small. In addition to that, Calamos Dynamic is 1.07 times more volatile than Wasatch Small Cap. It trades about 0.01 of its total potential returns per unit of risk. Wasatch Small Cap is currently generating about 0.2 per unit of volatility. If you would invest 995.00 in Wasatch Small Cap on October 28, 2024 and sell it today you would earn a total of 34.00 from holding Wasatch Small Cap or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Wasatch Small Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Wasatch Small Cap |
Calamos Dynamic and Wasatch Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Wasatch Small
The main advantage of trading using opposite Calamos Dynamic and Wasatch Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Wasatch Small 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 Wasatch Small will offset losses from the drop in Wasatch Small's long position.| Calamos Dynamic vs. Clough Global Allocation | Calamos Dynamic vs. Nuveen Municipal Credit | Calamos Dynamic vs. Putnam High Income | Calamos Dynamic vs. Virtus Dividend Interest |
| Wasatch Small vs. Ab Bond Inflation | Wasatch Small vs. Blrc Sgy Mnp | Wasatch Small vs. Versatile Bond Portfolio | Wasatch Small vs. Multisector Bond Sma |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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