Correlation Between Calamos Dynamic and T Rowe

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

Diversification Opportunities for Calamos Dynamic and T Rowe

-0.44

Correlation Coefficient

Calamos Dynamic  T Rowe

Very good diversification

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

Pair Corralation between Calamos Dynamic and T Rowe

Considering the 90-day investment horizon Calamos Dynamic is expected to generate 3.94 times less return on investment than T Rowe. In addition to that, Calamos Dynamic is 1.19 times more volatile than T Rowe Price. It trades about 0.07 of its total potential returns per unit of risk. T Rowe Price is currently generating about 0.32 per unit of volatility. If you would invest  7,458  in T Rowe Price on September 18, 2024 and sell it today you would earn a total of  371.00  from holding T Rowe Price or generate 4.97% 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.  T Rowe Price

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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

T Rowe Price

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, T Rowe may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Calamos Dynamic and T Rowe

The main advantage of trading using opposite Calamos Dynamic and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind Calamos Dynamic Convertible and T Rowe Price 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.