Correlation Between Calamos Dynamic and Victory Floating
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Victory Floating 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 Victory Floating 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 Victory Floating Rate, you can compare the effects of market volatilities on Calamos Dynamic and Victory Floating 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 Victory Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Victory Floating.
Diversification Opportunities for Calamos Dynamic and Victory Floating
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Victory is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Victory Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Floating Rate 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 Victory Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Floating Rate has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Victory Floating go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Victory Floating
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Victory Floating. In addition to that, Calamos Dynamic is 5.7 times more volatile than Victory Floating Rate. It trades about -0.19 of its total potential returns per unit of risk. Victory Floating Rate is currently generating about 0.14 per unit of volatility. If you would invest 787.00 in Victory Floating Rate on December 28, 2024 and sell it today you would earn a total of 13.00 from holding Victory Floating Rate or generate 1.65% 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. Victory Floating Rate
Performance |
Timeline |
Calamos Dynamic Conv |
Victory Floating Rate |
Calamos Dynamic and Victory Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Dynamic and Victory Floating
The main advantage of trading using opposite Calamos Dynamic and Victory Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Victory Floating 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 Victory Floating will offset losses from the drop in Victory Floating'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 |
Victory Floating vs. Victory Sophus Emerging | Victory Floating vs. Target Retirement 2050 | Victory Floating vs. Income Fund Income | Victory Floating vs. Usaa Nasdaq 100 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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