Correlation Between Allianzgi Equity and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Allianzgi Equity 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 Allianzgi Equity and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Equity Convertible and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Allianzgi Equity 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 Allianzgi Equity with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Equity and Calamos Dynamic.
Diversification Opportunities for Allianzgi Equity and Calamos Dynamic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianzgi and Calamos is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Equity Convertible 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 Allianzgi Equity 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 Allianzgi Equity Convertible 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 Allianzgi Equity i.e., Allianzgi Equity and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Allianzgi Equity and Calamos Dynamic
Considering the 90-day investment horizon Allianzgi Equity Convertible is expected to generate 0.71 times more return on investment than Calamos Dynamic. However, Allianzgi Equity Convertible is 1.42 times less risky than Calamos Dynamic. It trades about 0.43 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.0 per unit of risk. If you would invest 2,293 in Allianzgi Equity Convertible on September 1, 2024 and sell it today you would earn a total of 166.00 from holding Allianzgi Equity Convertible or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Equity Convertible vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Allianzgi Equity Con |
| Calamos Dynamic Conv |
Allianzgi Equity and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Equity and Calamos Dynamic
The main advantage of trading using opposite Allianzgi Equity and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Equity 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.| Allianzgi Equity vs. Rivernorth Opportunistic Municipalome | Allianzgi Equity vs. Blackrock Muni Intermediate | Allianzgi Equity vs. Blackrock Muniholdings Ny | Allianzgi Equity vs. Nuveen New York |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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