Correlation Between Calamos Dynamic and Fidelity Stock
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Fidelity Stock 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 Stock 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 Stock Selector, you can compare the effects of market volatilities on Calamos Dynamic and Fidelity Stock 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 Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Fidelity Stock.
Diversification Opportunities for Calamos Dynamic and Fidelity Stock
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Fidelity is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Fidelity Stock Selector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Stock Selector 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 Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Stock Selector has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Fidelity Stock go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Fidelity Stock
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.74 times more return on investment than Fidelity Stock. However, Calamos Dynamic Convertible is 1.36 times less risky than Fidelity Stock. It trades about 0.33 of its potential returns per unit of risk. Fidelity Stock Selector is currently generating about -0.09 per unit of risk. If you would invest 2,370 in Calamos Dynamic Convertible on September 24, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Dynamic Convertible or generate 4.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Calamos Dynamic Convertible vs. Fidelity Stock Selector
Performance |
Timeline |
Calamos Dynamic Conv |
Fidelity Stock Selector |
Calamos Dynamic and Fidelity Stock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Dynamic and Fidelity Stock
The main advantage of trading using opposite Calamos Dynamic and Fidelity Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Fidelity Stock 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 Stock will offset losses from the drop in Fidelity Stock'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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