Correlation Between Calamos Dynamic and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Tekla Healthcare 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 Tekla Healthcare 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 Tekla Healthcare Investors, you can compare the effects of market volatilities on Calamos Dynamic and Tekla Healthcare 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 Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Tekla Healthcare.
Diversification Opportunities for Calamos Dynamic and Tekla Healthcare
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Tekla is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv 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 Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Tekla Healthcare
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 11.63 times less return on investment than Tekla Healthcare. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.18 times less risky than Tekla Healthcare. It trades about 0.03 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,853 in Tekla Healthcare Investors on November 3, 2024 and sell it today you would earn a total of 105.00 from holding Tekla Healthcare Investors or generate 5.67% 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. Tekla Healthcare Investors
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Tekla Healthcare Inv |
Calamos Dynamic and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Tekla Healthcare
The main advantage of trading using opposite Calamos Dynamic and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare'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 |
| Tekla Healthcare vs. Financials Ultrasector Profund | Tekla Healthcare vs. 1919 Financial Services | Tekla Healthcare vs. Blackstone Secured Lending | Tekla Healthcare vs. John Hancock Financial |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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