Correlation Between Calamos Dynamic and Oakmark International

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

Diversification Opportunities for Calamos Dynamic and Oakmark International

-0.66

Correlation Coefficient

Calamos Dynamic  Oakmark International

Excellent diversification

The 3 months correlation between Calamos and Oakmark is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Oakmark International go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Oakmark International

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Oakmark International. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Dynamic Convertible is 1.02 times less risky than Oakmark International. The fund trades about -0.19 of its potential returns per unit of risk. The Oakmark International Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,491  in Oakmark International Fund on December 29, 2024 and sell it today you would earn a total of  245.00  from holding Oakmark International Fund or generate 9.84% return on investment over 90 days.

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

Calamos Dynamic Convertible  vs.  Oakmark International Fund

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 inconsistent performance in the last few months, the Fund's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Oakmark International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark International Fund are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Oakmark International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Calamos Dynamic and Oakmark International

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

The idea behind Calamos Dynamic Convertible and Oakmark International Fund 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.