Correlation Between Prudential Muni and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Prudential Muni 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 Prudential Muni and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Muni High and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Prudential Muni 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 Prudential Muni with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Muni and Calamos Dynamic.
Diversification Opportunities for Prudential Muni and Calamos Dynamic
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prudential and Calamos is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Muni High 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 Prudential Muni 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 Prudential Muni High 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 Prudential Muni i.e., Prudential Muni and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Prudential Muni and Calamos Dynamic
Assuming the 90 days horizon Prudential Muni is expected to generate 2.41 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, Prudential Muni High is 3.6 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,072 in Calamos Dynamic Convertible on November 28, 2024 and sell it today you would earn a total of 239.00 from holding Calamos Dynamic Convertible or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Muni High vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Prudential Muni High |
| Calamos Dynamic Conv |
Prudential Muni and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Muni and Calamos Dynamic
The main advantage of trading using opposite Prudential Muni and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Muni 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.| Prudential Muni vs. Davis Financial Fund | Prudential Muni vs. Fidelity Advisor Financial | Prudential Muni vs. John Hancock Financial | Prudential Muni vs. Financials Ultrasector Profund |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |