Correlation Between Mainstay Balanced and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Mainstay Balanced 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 Mainstay Balanced and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Balanced Fund and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Mainstay Balanced 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 Mainstay Balanced with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Balanced and Calamos Dynamic.
Diversification Opportunities for Mainstay Balanced and Calamos Dynamic
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Calamos is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Balanced Fund 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 Mainstay Balanced 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 Mainstay Balanced Fund 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 Mainstay Balanced i.e., Mainstay Balanced and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Mainstay Balanced and Calamos Dynamic
Assuming the 90 days horizon Mainstay Balanced Fund is expected to generate 0.49 times more return on investment than Calamos Dynamic. However, Mainstay Balanced Fund is 2.05 times less risky than Calamos Dynamic. It trades about 0.24 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.05 per unit of risk. If you would invest 3,214 in Mainstay Balanced Fund on August 30, 2024 and sell it today you would earn a total of 88.00 from holding Mainstay Balanced Fund or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Balanced Fund vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Mainstay Balanced |
| Calamos Dynamic Conv |
Mainstay Balanced and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Balanced and Calamos Dynamic
The main advantage of trading using opposite Mainstay Balanced and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Balanced 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.| Mainstay Balanced vs. Hennessy Technology Fund | Mainstay Balanced vs. Towpath Technology | Mainstay Balanced vs. Science Technology Fund | Mainstay Balanced vs. Technology Ultrasector Profund |
| Calamos Dynamic vs. Calamos LongShort Equity | Calamos Dynamic vs. Calamos Convertible And | Calamos Dynamic vs. Calamos Global Total | Calamos Dynamic vs. DTF Tax Free |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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