Correlation Between Calamos Strategic and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic 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 Strategic 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 Strategic Total and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Calamos Strategic 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 Strategic with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Calamos Dynamic.
Diversification Opportunities for Calamos Strategic and Calamos Dynamic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total 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 Strategic 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 Strategic Total 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 Strategic i.e., Calamos Strategic and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Calamos Strategic and Calamos Dynamic
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 0.9 times more return on investment than Calamos Dynamic. However, Calamos Strategic Total is 1.11 times less risky than Calamos Dynamic. It trades about 0.15 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 1,744 in Calamos Strategic Total on August 24, 2024 and sell it today you would earn a total of 49.00 from holding Calamos Strategic Total or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Calamos Strategic Total |
| Calamos Dynamic Conv |
Calamos Strategic and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Calamos Dynamic
The main advantage of trading using opposite Calamos Strategic and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic 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 Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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