Correlation Between Munivest Fund and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Munivest Fund 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 Munivest Fund and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munivest Fund and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Munivest Fund 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 Munivest Fund with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and Calamos Dynamic.
Diversification Opportunities for Munivest Fund and Calamos Dynamic
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Munivest and Calamos is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Munivest 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 Munivest Fund 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 Munivest 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 Munivest Fund i.e., Munivest Fund and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Munivest Fund and Calamos Dynamic
Considering the 90-day investment horizon Munivest Fund is expected to under-perform the Calamos Dynamic. But the fund apears to be less risky and, when comparing its historical volatility, Munivest Fund is 1.22 times less risky than Calamos Dynamic. The fund trades about -0.13 of its potential returns per unit of risk. The Calamos Dynamic Convertible is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,375 in Calamos Dynamic Convertible on September 19, 2024 and sell it today you would earn a total of 28.00 from holding Calamos Dynamic Convertible or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Munivest Fund vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Munivest Fund |
| Calamos Dynamic Conv |
Munivest Fund and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munivest Fund and Calamos Dynamic
The main advantage of trading using opposite Munivest Fund and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund 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.| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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