Correlation Between Calamos Dynamic and Baron Health
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Baron Health 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 Baron Health 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 Baron Health Care, you can compare the effects of market volatilities on Calamos Dynamic and Baron Health 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 Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Baron Health.
Diversification Opportunities for Calamos Dynamic and Baron Health
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calamos and Baron is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Baron Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Health Care 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 Baron Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Health Care has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Baron Health go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Baron Health
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.73 times more return on investment than Baron Health. However, Calamos Dynamic Convertible is 1.37 times less risky than Baron Health. It trades about 0.39 of its potential returns per unit of risk. Baron Health Care is currently generating about -0.26 per unit of risk. If you would invest 2,370 in Calamos Dynamic Convertible on September 25, 2024 and sell it today you would earn a total of 130.00 from holding Calamos Dynamic Convertible or generate 5.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Calamos Dynamic Convertible vs. Baron Health Care
Performance |
Timeline |
Calamos Dynamic Conv |
Baron Health Care |
Calamos Dynamic and Baron Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Dynamic and Baron Health
The main advantage of trading using opposite Calamos Dynamic and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Baron Health 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 Baron Health will offset losses from the drop in Baron Health's long position.Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity | Calamos Dynamic vs. Eaton Vance Tax |
Baron Health vs. Baron Discovery Fund | Baron Health vs. Baron Global Advantage | Baron Health vs. Baron Real Estate | Baron Health vs. Baron Focused Growth |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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