Correlation Between Real Estate and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Real Estate 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 Real Estate and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Estate Securities and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Real Estate 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 Real Estate with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Estate and Calamos Dynamic.
Diversification Opportunities for Real Estate and Calamos Dynamic
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Real and Calamos is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Securities 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 Real Estate 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 Real Estate Securities 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 Real Estate i.e., Real Estate and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Real Estate and Calamos Dynamic
Assuming the 90 days horizon Real Estate is expected to generate 1.63 times less return on investment than Calamos Dynamic. In addition to that, Real Estate is 1.03 times more volatile than Calamos Dynamic Convertible. It trades about 0.04 of its total potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.07 per unit of volatility. If you would invest 1,684 in Calamos Dynamic Convertible on September 13, 2024 and sell it today you would earn a total of 709.00 from holding Calamos Dynamic Convertible or generate 42.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Real Estate Securities vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Real Estate Securities |
| Calamos Dynamic Conv |
Real Estate and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Estate and Calamos Dynamic
The main advantage of trading using opposite Real Estate and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Estate 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.| Real Estate vs. Angel Oak Financial | Real Estate vs. Royce Global Financial | Real Estate vs. Gabelli Global Financial | Real Estate vs. John Hancock Financial |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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