Correlation Between Calamos Dynamic and Aston/river Road

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

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

Diversification Opportunities for Calamos Dynamic and Aston/river Road

-0.59

Correlation Coefficient

Calamos Dynamic  Aston/river Road

Excellent diversification

The 3 months correlation between Calamos and Aston/river is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Astonriver Road Independent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astonriver Road Inde and Calamos Dynamic 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 Calamos Dynamic Convertible are associated (or correlated) with Aston/river Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astonriver Road Inde has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Aston/river Road go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Aston/river Road

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Aston/river Road. In addition to that, Calamos Dynamic is 1.03 times more volatile than Astonriver Road Independent. It trades about -0.14 of its total potential returns per unit of risk. Astonriver Road Independent is currently generating about 0.12 per unit of volatility. If you would invest  1,022  in Astonriver Road Independent on December 23, 2024 and sell it today you would earn a total of  81.00  from holding Astonriver Road Independent or generate 7.93% return on investment over 90 days.

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

Calamos Dynamic Convertible  vs.  Astonriver Road Independent

Calamos Dynamic Conv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Dynamic Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest inconsistent performance, the Fund's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Astonriver Road Inde

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Astonriver Road Independent are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Aston/river Road may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Calamos Dynamic and Aston/river Road

The main advantage of trading using opposite Calamos Dynamic and Aston/river Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Aston/river Road 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 Aston/river Road will offset losses from the drop in Aston/river Road's long position.

The idea behind Calamos Dynamic Convertible and Astonriver Road Independent 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.