Correlation Between Blackrock Funds and Calamos Dynamic

Can any of the company-specific risk be diversified away by investing in both Blackrock Funds 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 Blackrock Funds and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackrock Funds and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Blackrock Funds 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 Blackrock Funds with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Funds and Calamos Dynamic.

Diversification Opportunities for Blackrock Funds and Calamos Dynamic

-0.19

Correlation Coefficient

Blackrock Funds  Calamos Dynamic

Good diversification

The 3 months correlation between Blackrock and Calamos is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Funds 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 Blackrock Funds 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 Blackrock Funds 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 Blackrock Funds i.e., Blackrock Funds and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Blackrock Funds and Calamos Dynamic

Assuming the 90 days horizon Blackrock Funds is expected to generate 2.77 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, Blackrock Funds is 2.63 times less risky than Calamos Dynamic. It trades about 0.07 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,635  in Calamos Dynamic Convertible on September 18, 2024 and sell it today you would earn a total of  767.00  from holding Calamos Dynamic Convertible or generate 46.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blackrock Funds   vs.  Calamos Dynamic Convertible

Blackrock Funds

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Funds are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Blackrock Funds is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Calamos Dynamic Conv

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Calamos Dynamic Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Blackrock Funds and Calamos Dynamic

The main advantage of trading using opposite Blackrock Funds and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Funds 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.

The idea behind Blackrock Funds and Calamos Dynamic Convertible pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.