Correlation Between Calamos Dynamic and Fidelity Advisor

Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Financial, you can compare the effects of market volatilities on Calamos Dynamic and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Fidelity Advisor.

Diversification Opportunities for Calamos Dynamic and Fidelity Advisor

-0.51

Correlation Coefficient

Calamos Dynamic  Fidelity Advisor

Excellent diversification

The 3 months correlation between Calamos and Fidelity is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Fidelity Advisor Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Fin 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Fin has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Fidelity Advisor

Considering the 90-day investment horizon Calamos Dynamic is expected to generate 89.43 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.28 times less risky than Fidelity Advisor. It trades about 0.0 of its potential returns per unit of risk. Fidelity Advisor Financial is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3,078  in Fidelity Advisor Financial on September 18, 2024 and sell it today you would earn a total of  408.00  from holding Fidelity Advisor Financial or generate 13.26% 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.  Fidelity Advisor Financial

Calamos Dynamic Conv

Risk-Adjusted Performance

0 of 100

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 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.

Fidelity Advisor Fin

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Financial are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Fidelity Advisor showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calamos Dynamic and Fidelity Advisor

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

The idea behind Calamos Dynamic Convertible and Fidelity Advisor Financial 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..