Correlation Between Pimco Dynamic and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both Pimco Dynamic and Calamos Strategic 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 Pimco Dynamic and Calamos Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Dynamic Income and Calamos Strategic Total, you can compare the effects of market volatilities on Pimco Dynamic and Calamos Strategic 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 Pimco Dynamic with a short position of Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Dynamic and Calamos Strategic.
Diversification Opportunities for Pimco Dynamic and Calamos Strategic
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pimco and Calamos is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Dynamic Income and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total and Pimco Dynamic 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 Pimco Dynamic Income are associated (or correlated) with Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Pimco Dynamic i.e., Pimco Dynamic and Calamos Strategic go up and down completely randomly.
Pair Corralation between Pimco Dynamic and Calamos Strategic
Considering the 90-day investment horizon Pimco Dynamic Income is expected to under-perform the Calamos Strategic. But the stock apears to be less risky and, when comparing its historical volatility, Pimco Dynamic Income is 1.12 times less risky than Calamos Strategic. The stock trades about -0.03 of its potential returns per unit of risk. The Calamos Strategic Total is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,750 in Calamos Strategic Total on August 26, 2024 and sell it today you would earn a total of 51.00 from holding Calamos Strategic Total or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Dynamic Income vs. Calamos Strategic Total
Performance |
| Timeline |
| Pimco Dynamic Income |
| Calamos Strategic Total |
Pimco Dynamic and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Dynamic and Calamos Strategic
The main advantage of trading using opposite Pimco Dynamic and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Dynamic position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| Pimco Dynamic vs. Pimco Income Strategy | Pimco Dynamic vs. MainStay CBRE Global | Pimco Dynamic vs. XAI Octagon Floating | Pimco Dynamic vs. Pimco Corporate Income |
| Calamos Strategic vs. Allspring Income Opportunities | Calamos Strategic vs. Allspring Global Dividend | Calamos Strategic vs. Blackstone Gso Senior | Calamos Strategic vs. John Hancock Preferred |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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