Correlation Between Calamos Dynamic and Eventide Healthcare
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Eventide Healthcare 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 Eventide Healthcare 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 Eventide Healthcare Life, you can compare the effects of market volatilities on Calamos Dynamic and Eventide Healthcare 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 Eventide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Eventide Healthcare.
Diversification Opportunities for Calamos Dynamic and Eventide Healthcare
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Eventide is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Eventide Healthcare Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Healthcare Life 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 Eventide Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Healthcare Life has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Eventide Healthcare go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Eventide Healthcare
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.6 times more return on investment than Eventide Healthcare. However, Calamos Dynamic Convertible is 1.66 times less risky than Eventide Healthcare. It trades about -0.02 of its potential returns per unit of risk. Eventide Healthcare Life is currently generating about -0.07 per unit of risk. If you would invest 2,321 in Calamos Dynamic Convertible on December 1, 2024 and sell it today you would lose (33.00) from holding Calamos Dynamic Convertible or give up 1.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Dynamic Convertible vs. Eventide Healthcare Life
Performance |
Timeline |
Calamos Dynamic Conv |
Eventide Healthcare Life |
Calamos Dynamic and Eventide Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Dynamic and Eventide Healthcare
The main advantage of trading using opposite Calamos Dynamic and Eventide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Eventide Healthcare 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 Eventide Healthcare will offset losses from the drop in Eventide Healthcare's long position.Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
Eventide Healthcare vs. Ashmore Emerging Markets | Eventide Healthcare vs. Pimco Emerging Markets | Eventide Healthcare vs. Siit Emerging Markets | Eventide Healthcare vs. Dws Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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