Correlation Between Profunds Ultrashort and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Profunds Ultrashort 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 Profunds Ultrashort and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profunds Ultrashort Nasdaq 100 and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Profunds Ultrashort 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 Profunds Ultrashort with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profunds Ultrashort and Calamos Dynamic.
Diversification Opportunities for Profunds Ultrashort and Calamos Dynamic
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Profunds and Calamos is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Profunds Ultrashort Nasdaq 100 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 Profunds Ultrashort 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 Profunds Ultrashort Nasdaq 100 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 Profunds Ultrashort i.e., Profunds Ultrashort and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Profunds Ultrashort and Calamos Dynamic
Assuming the 90 days horizon Profunds Ultrashort Nasdaq 100 is expected to under-perform the Calamos Dynamic. In addition to that, Profunds Ultrashort is 2.04 times more volatile than Calamos Dynamic Convertible. It trades about -0.08 of its total potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.08 per unit of volatility. If you would invest 2,441 in Calamos Dynamic Convertible on August 28, 2024 and sell it today you would lose (52.00) from holding Calamos Dynamic Convertible or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profunds Ultrashort Nasdaq 100 vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Profunds Ultrashort |
| Calamos Dynamic Conv |
Profunds Ultrashort and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profunds Ultrashort and Calamos Dynamic
The main advantage of trading using opposite Profunds Ultrashort and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profunds Ultrashort 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.| Profunds Ultrashort vs. Rbc Short Duration | Profunds Ultrashort vs. Short Intermediate Bond Fund | Profunds Ultrashort vs. Siit Ultra Short | Profunds Ultrashort vs. Angel Oak Ultrashort |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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