Correlation Between Ubs Emerging and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Ubs Emerging 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 Ubs Emerging and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Emerging Markets and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Ubs Emerging 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 Ubs Emerging with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Emerging and Calamos Dynamic.
Diversification Opportunities for Ubs Emerging and Calamos Dynamic
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ubs and Calamos is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Emerging Markets 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 Ubs Emerging 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 Ubs Emerging Markets 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 Ubs Emerging i.e., Ubs Emerging and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Ubs Emerging and Calamos Dynamic
Assuming the 90 days horizon Ubs Emerging Markets is expected to under-perform the Calamos Dynamic. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ubs Emerging Markets is 1.5 times less risky than Calamos Dynamic. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Calamos Dynamic Convertible is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,418 in Calamos Dynamic Convertible on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Calamos Dynamic Convertible or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Emerging Markets vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Ubs Emerging Markets |
| Calamos Dynamic Conv |
Ubs Emerging and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Emerging and Calamos Dynamic
The main advantage of trading using opposite Ubs Emerging and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Emerging 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.| Ubs Emerging vs. Delaware Limited Term Diversified | Ubs Emerging vs. Lord Abbett Diversified | Ubs Emerging vs. Global Diversified Income | Ubs Emerging vs. Guggenheim Diversified Income |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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