Correlation Between Ft 7934: and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Ft 7934: 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 Ft 7934: and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ft 7934 Corporate and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Ft 7934: 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 Ft 7934: with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ft 7934: and Calamos Dynamic.
Diversification Opportunities for Ft 7934: and Calamos Dynamic
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FZNQEX and Calamos is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ft 7934 Corporate 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 Ft 7934: 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 Ft 7934 Corporate 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 Ft 7934: i.e., Ft 7934: and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Ft 7934: and Calamos Dynamic
Assuming the 90 days trading horizon Ft 7934 Corporate is expected to generate 0.12 times more return on investment than Calamos Dynamic. However, Ft 7934 Corporate is 8.37 times less risky than Calamos Dynamic. It trades about -0.02 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.04 per unit of risk. If you would invest 58,067 in Ft 7934 Corporate on August 31, 2024 and sell it today you would lose (41.00) from holding Ft 7934 Corporate or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ft 7934 Corporate vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Ft 7934 Corporate |
| Calamos Dynamic Conv |
Ft 7934: and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ft 7934: and Calamos Dynamic
The main advantage of trading using opposite Ft 7934: and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ft 7934: 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.| Ft 7934: vs. Vanguard Total Stock | Ft 7934: vs. Vanguard 500 Index | Ft 7934: vs. Vanguard Total Stock | Ft 7934: vs. Vanguard Total Stock |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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