Correlation Between Versatile Bond and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Versatile Bond 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 Versatile Bond and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Versatile Bond Portfolio and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Versatile Bond 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 Versatile Bond with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Versatile Bond and Calamos Dynamic.
Diversification Opportunities for Versatile Bond and Calamos Dynamic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Versatile and Calamos is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Versatile Bond Portfolio 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 Versatile Bond 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 Versatile Bond Portfolio 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 Versatile Bond i.e., Versatile Bond and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Versatile Bond and Calamos Dynamic
Assuming the 90 days horizon Versatile Bond Portfolio is expected to generate 0.1 times more return on investment than Calamos Dynamic. However, Versatile Bond Portfolio is 10.4 times less risky than Calamos Dynamic. It trades about -0.05 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.13 per unit of risk. If you would invest 6,636 in Versatile Bond Portfolio on August 29, 2024 and sell it today you would lose (9.00) from holding Versatile Bond Portfolio or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Versatile Bond Portfolio vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Versatile Bond Portfolio |
| Calamos Dynamic Conv |
Versatile Bond and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Versatile Bond and Calamos Dynamic
The main advantage of trading using opposite Versatile Bond and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Versatile Bond 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.| Versatile Bond vs. Permanent Portfolio Class | Versatile Bond vs. HUMANA INC | Versatile Bond vs. Aquagold International | Versatile Bond vs. Barloworld Ltd ADR |
| Calamos Dynamic vs. Gabelli Global Small | Calamos Dynamic vs. MFS Investment Grade | Calamos Dynamic vs. Eaton Vance National | Calamos Dynamic vs. GAMCO Natural Resources |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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