Correlation Between Calamos Strategic and Locorr Dynamic
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Locorr 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 Locorr 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 Locorr Dynamic Equity, you can compare the effects of market volatilities on Calamos Strategic and Locorr 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 Locorr Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Locorr Dynamic.
Diversification Opportunities for Calamos Strategic and Locorr Dynamic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Locorr is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Locorr Dynamic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Dynamic Equity 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 Locorr Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Dynamic Equity has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Locorr Dynamic go up and down completely randomly.
Pair Corralation between Calamos Strategic and Locorr Dynamic
Considering the 90-day investment horizon Calamos Strategic is expected to generate 1.99 times less return on investment than Locorr Dynamic. In addition to that, Calamos Strategic is 1.56 times more volatile than Locorr Dynamic Equity. It trades about 0.16 of its total potential returns per unit of risk. Locorr Dynamic Equity is currently generating about 0.49 per unit of volatility. If you would invest 1,217 in Locorr Dynamic Equity on August 28, 2024 and sell it today you would earn a total of 76.00 from holding Locorr Dynamic Equity or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Locorr Dynamic Equity
Performance |
| Timeline |
| Calamos Strategic Total |
| Locorr Dynamic Equity |
Calamos Strategic and Locorr Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Locorr Dynamic
The main advantage of trading using opposite Calamos Strategic and Locorr Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Locorr 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 Locorr Dynamic will offset losses from the drop in Locorr 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 |
| Locorr Dynamic vs. Fidelity Advisor Diversified | Locorr Dynamic vs. Lord Abbett Diversified | Locorr Dynamic vs. Huber Capital Diversified | Locorr Dynamic vs. American Funds Conservative |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |