Correlation Between Virtus Dividend and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Virtus Dividend 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 Virtus Dividend and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Dividend Interest and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Virtus Dividend 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 Virtus Dividend with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Dividend and Calamos Dynamic.
Diversification Opportunities for Virtus Dividend and Calamos Dynamic
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Virtus and Calamos is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Dividend Interest 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 Virtus Dividend 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 Virtus Dividend Interest 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 Virtus Dividend i.e., Virtus Dividend and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Virtus Dividend and Calamos Dynamic
Considering the 90-day investment horizon Virtus Dividend Interest is expected to generate 0.66 times more return on investment than Calamos Dynamic. However, Virtus Dividend Interest is 1.51 times less risky than Calamos Dynamic. It trades about 0.3 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.07 per unit of risk. If you would invest 1,267 in Virtus Dividend Interest on October 29, 2024 and sell it today you would earn a total of 43.00 from holding Virtus Dividend Interest or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Dividend Interest vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Virtus Dividend Interest |
| Calamos Dynamic Conv |
Virtus Dividend and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Dividend and Calamos Dynamic
The main advantage of trading using opposite Virtus Dividend and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Dividend 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.| Virtus Dividend vs. Blackrock Muniyield | Virtus Dividend vs. Blackrock Muni Intermediate | Virtus Dividend vs. Blackrock Muniyield Quality | Virtus Dividend vs. Blackrock Muniyield Quality |
| Calamos Dynamic vs. Clough Global Allocation | Calamos Dynamic vs. Nuveen Municipal Credit | Calamos Dynamic vs. Putnam High Income | Calamos Dynamic vs. Virtus Dividend Interest |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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