Correlation Between Hawaiian Tax-free and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Hawaiian Tax-free 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 Hawaiian Tax-free and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawaiian Tax Free Trust and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Hawaiian Tax-free 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 Hawaiian Tax-free with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Tax-free and Calamos Dynamic.
Diversification Opportunities for Hawaiian Tax-free and Calamos Dynamic
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hawaiian and Calamos is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Tax Free Trust 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 Hawaiian Tax-free 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 Hawaiian Tax Free Trust 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 Hawaiian Tax-free i.e., Hawaiian Tax-free and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Hawaiian Tax-free and Calamos Dynamic
Assuming the 90 days horizon Hawaiian Tax-free is expected to generate 38.72 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, Hawaiian Tax Free Trust is 5.79 times less risky than Calamos Dynamic. It trades about 0.01 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 1,750 in Calamos Dynamic Convertible on November 27, 2024 and sell it today you would earn a total of 620.00 from holding Calamos Dynamic Convertible or generate 35.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hawaiian Tax Free Trust vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Hawaiian Tax Free |
| Calamos Dynamic Conv |
Hawaiian Tax-free and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Tax-free and Calamos Dynamic
The main advantage of trading using opposite Hawaiian Tax-free and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Tax-free 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.| Hawaiian Tax-free vs. Barings Global Floating | Hawaiian Tax-free vs. Rbc Global Equity | Hawaiian Tax-free vs. Ms Global Fixed | Hawaiian Tax-free vs. Dws Global Macro |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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