Correlation Between Pax Balanced and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Pax 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 Pax 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 Pax Balanced Fund and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Pax 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 Pax Balanced with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pax Balanced and Calamos Dynamic.
Diversification Opportunities for Pax Balanced and Calamos Dynamic
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pax and Calamos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pax 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 Pax 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 Pax 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 Pax Balanced i.e., Pax Balanced and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Pax Balanced and Calamos Dynamic
Assuming the 90 days horizon Pax Balanced Fund is expected to generate 0.46 times more return on investment than Calamos Dynamic. However, Pax Balanced Fund is 2.18 times less risky than Calamos Dynamic. It trades about 0.1 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 2,727 in Pax Balanced Fund on August 30, 2024 and sell it today you would earn a total of 29.00 from holding Pax Balanced Fund or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pax Balanced Fund vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Pax Balanced |
| Calamos Dynamic Conv |
Pax Balanced and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pax Balanced and Calamos Dynamic
The main advantage of trading using opposite Pax Balanced and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pax 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.| Pax Balanced vs. Calamos Dynamic Convertible | Pax Balanced vs. Ambrus Core Bond | Pax Balanced vs. Victory High Yield | Pax Balanced vs. Artisan High Income |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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