Correlation Between Calamos Convertible and Calamos Dynamic

Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Calamos Dynamic 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 Convertible and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calamos Convertible Opportunities and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Calamos Convertible and Calamos Dynamic 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 Convertible with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Calamos Dynamic.

Diversification Opportunities for Calamos Convertible and Calamos Dynamic

0.92

Correlation Coefficient

Calamos Convertible  Calamos Dynamic

Almost no diversification

The 3 months correlation between Calamos and Calamos is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible Opportunit and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Calamos Convertible 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 Convertible Opportunities are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Calamos Convertible and Calamos Dynamic

Considering the 90-day investment horizon Calamos Convertible Opportunities is expected to under-perform the Calamos Dynamic. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Convertible Opportunities is 1.07 times less risky than Calamos Dynamic. The fund trades about -0.31 of its potential returns per unit of risk. The Calamos Dynamic Convertible is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest  2,441  in Calamos Dynamic Convertible on December 29, 2024 and sell it today you would lose (297.00) from holding Calamos Dynamic Convertible or give up 12.17% of portfolio value over 90 days.

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

Calamos Convertible Opportunit  vs.  Calamos Dynamic Convertible

Calamos Convertible

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Convertible Opportunities has generated negative risk-adjusted returns adding no value to fund investors. Despite unsteady performance in the last few months, the Fund's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the fund traders.

Calamos Dynamic Conv

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Fund's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with Calamos Convertible and Calamos Dynamic

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

The idea behind Calamos Convertible Opportunities and Calamos Dynamic Convertible 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.