Correlation Between Calamos Dynamic and Moderately Conservative

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

Diversification Opportunities for Calamos Dynamic and Moderately Conservative

0.38

Correlation Coefficient

Calamos Dynamic  Moderately Conservative

Weak diversification

The 3 months correlation between Calamos and Moderately is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Moderately Servative Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderately Conservative 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 Moderately Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderately Conservative has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Moderately Conservative go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Moderately Conservative

Considering the 90-day investment horizon Calamos Dynamic is expected to generate 2.28 times less return on investment than Moderately Conservative. In addition to that, Calamos Dynamic is 2.19 times more volatile than Moderately Servative Balanced. It trades about 0.04 of its total potential returns per unit of risk. Moderately Servative Balanced is currently generating about 0.21 per unit of volatility. If you would invest  1,061  in Moderately Servative Balanced on September 4, 2024 and sell it today you would earn a total of  69.00  from holding Moderately Servative Balanced or generate 6.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  Moderately Servative Balanced

Calamos Dynamic Conv

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dynamic Convertible are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. 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.

Moderately Conservative

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Moderately Servative Balanced are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Moderately Conservative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Dynamic and Moderately Conservative

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

The idea behind Calamos Dynamic Convertible and Moderately Servative Balanced 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 Stocks Directory module to find actively traded stocks across global markets.