Correlation Between Monthly Rebalance and Calamos Dynamic

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

By analyzing existing cross correlation between Monthly Rebalance Nasdaq 100 and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Monthly Rebalance 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 Monthly Rebalance with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monthly Rebalance and Calamos Dynamic.

Diversification Opportunities for Monthly Rebalance and Calamos Dynamic

-0.23

Correlation Coefficient

Monthly Rebalance  Calamos Dynamic

Very good diversification

The 3 months correlation between Monthly and Calamos is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Monthly Rebalance Nasdaq 100 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 Monthly Rebalance 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 Monthly Rebalance Nasdaq 100 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 Monthly Rebalance i.e., Monthly Rebalance and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Monthly Rebalance and Calamos Dynamic

Assuming the 90 days horizon Monthly Rebalance Nasdaq 100 is expected to generate 4.9 times more return on investment than Calamos Dynamic. However, Monthly Rebalance is 4.9 times more volatile than Calamos Dynamic Convertible. It trades about 0.09 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.04 per unit of risk. If you would invest  51,068  in Monthly Rebalance Nasdaq 100 on September 16, 2024 and sell it today you would earn a total of  11,852  from holding Monthly Rebalance Nasdaq 100 or generate 23.21% return on investment over 90 days.

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

Monthly Rebalance Nasdaq 100  vs.  Calamos Dynamic Convertible

Monthly Rebalance

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Monthly Rebalance Nasdaq 100 are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady fundamental indicators, Monthly Rebalance showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Monthly Rebalance and Calamos Dynamic

The main advantage of trading using opposite Monthly Rebalance and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monthly Rebalance 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 Monthly Rebalance Nasdaq 100 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.