Correlation Between Calamos Dynamic and Pimco Real

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

Diversification Opportunities for Calamos Dynamic and Pimco Real

-0.05

Correlation Coefficient

Calamos Dynamic  Pimco Real

Good diversification

The 3 months correlation between Calamos and Pimco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Pimco Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Real Return 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 Pimco Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Real Return has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Pimco Real go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Pimco Real

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.29 times more return on investment than Pimco Real. However, Calamos Dynamic is 1.29 times more volatile than Pimco Real Return. It trades about 0.09 of its potential returns per unit of risk. Pimco Real Return is currently generating about -0.15 per unit of risk. If you would invest  2,347  in Calamos Dynamic Convertible on October 7, 2024 and sell it today you would earn a total of  84.00  from holding Calamos Dynamic Convertible or generate 3.58% return on investment over 90 days.

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

Calamos Dynamic Convertible  vs.  Pimco Real Return

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.

Pimco Real Return

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pimco Real Return has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calamos Dynamic and Pimco Real

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

The idea behind Calamos Dynamic Convertible and Pimco Real Return 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.