Correlation Between Calamos LongShort and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Calamos LongShort and Calamos Dynamic 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 LongShort and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos LongShort Equity and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Calamos LongShort and Calamos Dynamic 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 LongShort with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and Calamos Dynamic.
Diversification Opportunities for Calamos LongShort and Calamos Dynamic
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Calamos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Calamos LongShort 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 LongShort Equity are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Calamos LongShort and Calamos Dynamic
Considering the 90-day investment horizon Calamos LongShort Equity is expected to generate 0.62 times more return on investment than Calamos Dynamic. However, Calamos LongShort Equity is 1.61 times less risky than Calamos Dynamic. It trades about 0.02 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.01 per unit of risk. If you would invest 1,551 in Calamos LongShort Equity on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Calamos LongShort Equity or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos LongShort Equity vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Calamos LongShort Equity |
| Calamos Dynamic Conv |
Calamos LongShort and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos LongShort and Calamos Dynamic
The main advantage of trading using opposite Calamos LongShort and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort position performs unexpectedly, Calamos Dynamic 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 Calamos Dynamic will offset losses from the drop in Calamos Dynamic's long position.| Calamos LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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