Correlation Between Clearbridge Value and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Clearbridge Value 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 Clearbridge Value and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Value Trust and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Clearbridge Value 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 Clearbridge Value with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Value and Calamos Dynamic.
Diversification Opportunities for Clearbridge Value and Calamos Dynamic
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clearbridge and Calamos is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Value 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 Clearbridge Value 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 Clearbridge Value 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 Clearbridge Value i.e., Clearbridge Value and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Clearbridge Value and Calamos Dynamic
Assuming the 90 days horizon Clearbridge Value Trust is expected to generate 0.85 times more return on investment than Calamos Dynamic. However, Clearbridge Value Trust is 1.18 times less risky than Calamos Dynamic. It trades about 0.22 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.13 per unit of risk. If you would invest 13,040 in Clearbridge Value Trust on August 29, 2024 and sell it today you would earn a total of 619.00 from holding Clearbridge Value Trust or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Value Trust vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Clearbridge Value Trust |
| Calamos Dynamic Conv |
Clearbridge Value and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Value and Calamos Dynamic
The main advantage of trading using opposite Clearbridge Value and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Value 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.| Clearbridge Value vs. Calamos Dynamic Convertible | Clearbridge Value vs. Putnam Convertible Incm Gwth | Clearbridge Value vs. Allianzgi Convertible Income | Clearbridge Value vs. Rationalpier 88 Convertible |
| Calamos Dynamic vs. Gabelli Global Small | Calamos Dynamic vs. MFS Investment Grade | Calamos Dynamic vs. Eaton Vance National | Calamos Dynamic vs. GAMCO Natural Resources |
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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