Correlation Between Calamos Dynamic and Wilmington New
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Wilmington New 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 Wilmington New 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 Wilmington New York, you can compare the effects of market volatilities on Calamos Dynamic and Wilmington New 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 Wilmington New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Wilmington New.
Diversification Opportunities for Calamos Dynamic and Wilmington New
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Wilmington is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Wilmington New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington New York 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 Wilmington New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington New York has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Wilmington New go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Wilmington New
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 5.61 times more return on investment than Wilmington New. However, Calamos Dynamic is 5.61 times more volatile than Wilmington New York. It trades about 0.06 of its potential returns per unit of risk. Wilmington New York is currently generating about 0.06 per unit of risk. If you would invest 1,757 in Calamos Dynamic Convertible on September 1, 2024 and sell it today you would earn a total of 620.00 from holding Calamos Dynamic Convertible or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Wilmington New York
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Wilmington New York |
Calamos Dynamic and Wilmington New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Wilmington New
The main advantage of trading using opposite Calamos Dynamic and Wilmington New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Wilmington New 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 Wilmington New will offset losses from the drop in Wilmington New'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 |
| Wilmington New vs. Calamos Dynamic Convertible | Wilmington New vs. Allianzgi Convertible Income | Wilmington New vs. Advent Claymore Convertible | Wilmington New vs. Putnam Convertible Incm Gwth |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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