Correlation Between Victory High and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Victory High 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 Victory High and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory High Yield and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Victory High 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 Victory High with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory High and Calamos Dynamic.
Diversification Opportunities for Victory High and Calamos Dynamic
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Victory and Calamos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Victory High Yield 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 Victory High 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 Victory High Yield 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 Victory High i.e., Victory High and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Victory High and Calamos Dynamic
Assuming the 90 days horizon Victory High Yield is expected to generate 0.18 times more return on investment than Calamos Dynamic. However, Victory High Yield is 5.69 times less risky than Calamos Dynamic. It trades about 0.29 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.0 per unit of risk. If you would invest 549.00 in Victory High Yield on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Victory High Yield or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Victory High Yield vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Victory High Yield |
| Calamos Dynamic Conv |
Victory High and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory High and Calamos Dynamic
The main advantage of trading using opposite Victory High and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory High 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.| Victory High vs. Victory Rs International | Victory High vs. Victory High Yield | Victory High vs. Victory Sycamore Established | Victory High vs. Victory Integrity Discovery |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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