Correlation Between Fidelity Income and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Fidelity Income 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 Fidelity Income and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Income Replacement and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Fidelity Income 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 Fidelity Income with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Income and Calamos Dynamic.
Diversification Opportunities for Fidelity Income and Calamos Dynamic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and Calamos is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Income Replacement 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 Fidelity Income 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 Fidelity Income Replacement 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 Fidelity Income i.e., Fidelity Income and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Fidelity Income and Calamos Dynamic
Assuming the 90 days horizon Fidelity Income is expected to generate 2.93 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, Fidelity Income Replacement is 3.45 times less risky than Calamos Dynamic. It trades about 0.08 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,684 in Calamos Dynamic Convertible on September 12, 2024 and sell it today you would earn a total of 697.00 from holding Calamos Dynamic Convertible or generate 41.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Income Replacement vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Fidelity Income Repl |
| Calamos Dynamic Conv |
Fidelity Income and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Income and Calamos Dynamic
The main advantage of trading using opposite Fidelity Income and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Income 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.| Fidelity Income vs. Lord Abbett Small | Fidelity Income vs. Fidelity Small Cap | Fidelity Income vs. Valic Company I | Fidelity Income vs. Great West Loomis Sayles |
| 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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