Correlation Between China Region and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both China Region 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 China Region and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Region Fund and Calamos Dynamic Convertible, you can compare the effects of market volatilities on China Region 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 China Region with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Region and Calamos Dynamic.
Diversification Opportunities for China Region and Calamos Dynamic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Calamos is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Region Fund 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 China Region 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 China Region Fund 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 China Region i.e., China Region and Calamos Dynamic go up and down completely randomly.
Pair Corralation between China Region and Calamos Dynamic
Assuming the 90 days horizon China Region Fund is expected to under-perform the Calamos Dynamic. In addition to that, China Region is 1.01 times more volatile than Calamos Dynamic Convertible. It trades about -0.03 of its total potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.06 per unit of volatility. If you would invest 1,890 in Calamos Dynamic Convertible on August 30, 2024 and sell it today you would earn a total of 478.00 from holding Calamos Dynamic Convertible or generate 25.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.71% |
| Values | Daily Returns |
China Region Fund vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| China Region |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Calamos Dynamic Conv |
China Region and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Region and Calamos Dynamic
The main advantage of trading using opposite China Region and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Region 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.| China Region vs. The Hartford Municipal | China Region vs. Intermediate Term Tax Free Bond | China Region vs. Nuveen Minnesota Municipal | China Region vs. Counterpoint Tactical Municipal |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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