Correlation Between Calamos Dynamic and Payden Global
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Payden Global 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 Payden Global 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 Payden Global Low, you can compare the effects of market volatilities on Calamos Dynamic and Payden Global 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 Payden Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Payden Global.
Diversification Opportunities for Calamos Dynamic and Payden Global
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Payden is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Payden Global Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Global Low 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 Payden Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Global Low has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Payden Global go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Payden Global
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Payden Global. In addition to that, Calamos Dynamic is 9.05 times more volatile than Payden Global Low. It trades about -0.05 of its total potential returns per unit of risk. Payden Global Low is currently generating about 0.17 per unit of volatility. If you would invest 962.00 in Payden Global Low on December 4, 2024 and sell it today you would earn a total of 10.00 from holding Payden Global Low or generate 1.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Calamos Dynamic Convertible vs. Payden Global Low
Performance |
Timeline |
Calamos Dynamic Conv |
Payden Global Low |
Calamos Dynamic and Payden Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Dynamic and Payden Global
The main advantage of trading using opposite Calamos Dynamic and Payden Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Payden Global 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 Payden Global will offset losses from the drop in Payden Global'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 |
Payden Global vs. Simt High Yield | Payden Global vs. Artisan High Income | Payden Global vs. Siit High Yield | Payden Global vs. Pace High Yield |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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