Correlation Between Visa and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Calamos Dynamic.
Diversification Opportunities for Visa and Calamos Dynamic
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Visa and Calamos is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A 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 Visa 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 Visa Class A 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 Visa i.e., Visa and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Visa and Calamos Dynamic
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.37 times more return on investment than Calamos Dynamic. However, Visa is 1.37 times more volatile than Calamos Dynamic Convertible. It trades about 0.29 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.01 per unit of risk. If you would invest 28,322 in Visa Class A on August 24, 2024 and sell it today you would earn a total of 2,417 from holding Visa Class A or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Visa Class A vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Visa Class A |
| Calamos Dynamic Conv |
Visa and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Calamos Dynamic
The main advantage of trading using opposite Visa and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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