Correlation Between Calamos Dynamic and Pro Blend
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Pro Blend 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 Pro Blend 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 Pro Blend Extended Term, you can compare the effects of market volatilities on Calamos Dynamic and Pro Blend 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 Pro Blend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Pro Blend.
Diversification Opportunities for Calamos Dynamic and Pro Blend
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Pro is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Blend Extended 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 Pro Blend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Blend Extended has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Pro Blend go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Pro Blend
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.7 times more return on investment than Pro Blend. However, Calamos Dynamic is 2.7 times more volatile than Pro Blend Extended Term. It trades about 0.02 of its potential returns per unit of risk. Pro Blend Extended Term is currently generating about 0.05 per unit of risk. If you would invest 2,352 in Calamos Dynamic Convertible on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Calamos Dynamic Convertible or generate 1.23% 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. Pro Blend Extended Term
Performance |
Timeline |
Calamos Dynamic Conv |
Pro Blend Extended |
Calamos Dynamic and Pro Blend Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Dynamic and Pro Blend
The main advantage of trading using opposite Calamos Dynamic and Pro Blend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Pro Blend 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 Pro Blend will offset losses from the drop in Pro Blend'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 |
Pro Blend vs. Qs Global Equity | Pro Blend vs. Rbc Global Equity | Pro Blend vs. Multimedia Portfolio Multimedia | Pro Blend vs. Touchstone International Equity |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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