Correlation Between Calamos Short-term and Dfa Five-year
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Dfa Five-year 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 Short-term and Dfa Five-year into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Short Term Bond and Dfa Five Year Global, you can compare the effects of market volatilities on Calamos Short-term and Dfa Five-year 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 Short-term with a short position of Dfa Five-year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Dfa Five-year.
Diversification Opportunities for Calamos Short-term and Dfa Five-year
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Dfa is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Dfa Five Year Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Five Year and Calamos Short-term 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 Short Term Bond are associated (or correlated) with Dfa Five-year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Five Year has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Dfa Five-year go up and down completely randomly.
Pair Corralation between Calamos Short-term and Dfa Five-year
Assuming the 90 days horizon Calamos Short-term is expected to generate 1.25 times less return on investment than Dfa Five-year. In addition to that, Calamos Short-term is 2.69 times more volatile than Dfa Five Year Global. It trades about 0.14 of its total potential returns per unit of risk. Dfa Five Year Global is currently generating about 0.47 per unit of volatility. If you would invest 1,013 in Dfa Five Year Global on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Dfa Five Year Global or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. Dfa Five Year Global
Performance |
| Timeline |
| Calamos Short Term |
| Dfa Five Year |
Calamos Short-term and Dfa Five-year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Dfa Five-year
The main advantage of trading using opposite Calamos Short-term and Dfa Five-year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Dfa Five-year 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 Dfa Five-year will offset losses from the drop in Dfa Five-year's long position.| Calamos Short-term vs. Lord Abbett Small | Calamos Short-term vs. Heartland Value Plus | Calamos Short-term vs. Mid Cap Value Profund | Calamos Short-term vs. Vanguard Small Cap Value |
| Dfa Five-year vs. Legg Mason Bw | Dfa Five-year vs. Goldman Sachs Large | Dfa Five-year vs. T Rowe Price | Dfa Five-year vs. Tax Managed Large Cap |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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