Correlation Between Investment and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Investment 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 Investment and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Of America and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Investment 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 Investment with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Calamos Dynamic.
Diversification Opportunities for Investment and Calamos Dynamic
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investment and Calamos is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Investment Of America 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 Investment 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 Investment Of America 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 Investment i.e., Investment and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Investment and Calamos Dynamic
Assuming the 90 days horizon Investment Of America is expected to generate 0.64 times more return on investment than Calamos Dynamic. However, Investment Of America is 1.57 times less risky than Calamos Dynamic. It trades about 0.31 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 6,034 in Investment Of America on September 5, 2024 and sell it today you would earn a total of 288.00 from holding Investment Of America or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment Of America vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Investment Of America |
| Calamos Dynamic Conv |
Investment and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Calamos Dynamic
The main advantage of trading using opposite Investment and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment 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.| Investment vs. Calamos Dynamic Convertible | Investment vs. Allianzgi Convertible Income | Investment vs. Putnam Convertible Incm Gwth | Investment vs. Virtus Convertible |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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