Correlation Between Advent Claymore and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Advent Claymore 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 Advent Claymore and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Claymore Convertible and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Advent Claymore 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 Advent Claymore with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Calamos Dynamic.
Diversification Opportunities for Advent Claymore and Calamos Dynamic
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Calamos is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible 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 Advent Claymore 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 Advent Claymore Convertible 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 Advent Claymore i.e., Advent Claymore and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Advent Claymore and Calamos Dynamic
Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 0.49 times more return on investment than Calamos Dynamic. However, Advent Claymore Convertible is 2.05 times less risky than Calamos Dynamic. It trades about 0.1 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.07 per unit of risk. If you would invest 1,226 in Advent Claymore Convertible on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Advent Claymore Convertible or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Claymore Convertible vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Advent Claymore Conv |
| Calamos Dynamic Conv |
Advent Claymore and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Claymore and Calamos Dynamic
The main advantage of trading using opposite Advent Claymore and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore 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.| Advent Claymore vs. Tax Managed Mid Small | Advent Claymore vs. Nasdaq 100 Profund Nasdaq 100 | Advent Claymore vs. Qs Large Cap | Advent Claymore vs. Ultranasdaq 100 Profund Ultranasdaq 100 |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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