Correlation Between Calamos Dynamic and Thrivent Moderately

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

Diversification Opportunities for Calamos Dynamic and Thrivent Moderately

-0.44

Correlation Coefficient

Calamos Dynamic  Thrivent Moderately

Very good diversification

The 3 months correlation between Calamos and Thrivent is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Thrivent Moderately Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Moderately 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 Thrivent Moderately. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Moderately has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Thrivent Moderately go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Thrivent Moderately

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.45 times more return on investment than Thrivent Moderately. However, Calamos Dynamic is 2.45 times more volatile than Thrivent Moderately Servative. It trades about 0.08 of its potential returns per unit of risk. Thrivent Moderately Servative is currently generating about 0.09 per unit of risk. If you would invest  1,834  in Calamos Dynamic Convertible on October 22, 2024 and sell it today you would earn a total of  593.00  from holding Calamos Dynamic Convertible or generate 32.33% return on investment over 90 days.

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

Calamos Dynamic Convertible  vs.  Thrivent Moderately Servative

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.

Thrivent Moderately

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thrivent Moderately Servative has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Thrivent Moderately 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 Thrivent Moderately

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

The idea behind Calamos Dynamic Convertible and Thrivent Moderately Servative 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.