Correlation Between Calamos Dynamic and Hartford Healthcare

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

Diversification Opportunities for Calamos Dynamic and Hartford Healthcare

0.34

Correlation Coefficient

Calamos Dynamic  Hartford Healthcare

Weak diversification

The 3 months correlation between Calamos and Hartford is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Hartford Healthcare Hls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Healthcare Hls 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 Hartford Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Healthcare Hls has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Hartford Healthcare go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Hartford Healthcare

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Hartford Healthcare. In addition to that, Calamos Dynamic is 1.28 times more volatile than Hartford Healthcare Hls. It trades about -0.14 of its total potential returns per unit of risk. Hartford Healthcare Hls is currently generating about 0.02 per unit of volatility. If you would invest  1,448  in Hartford Healthcare Hls on December 22, 2024 and sell it today you would earn a total of  15.00  from holding Hartford Healthcare Hls or generate 1.04% return on investment over 90 days.

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

Calamos Dynamic Convertible  vs.  Hartford Healthcare Hls

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.

Hartford Healthcare Hls

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hartford Healthcare Hls are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Hartford Healthcare is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Dynamic and Hartford Healthcare

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

The idea behind Calamos Dynamic Convertible and Hartford Healthcare Hls 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.