Correlation Between Lazard Us and Calamos Dynamic

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

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

Diversification Opportunities for Lazard Us and Calamos Dynamic

-0.22

Correlation Coefficient

Lazard Us  Calamos Dynamic

Very good diversification

The 3 months correlation between Lazard and Calamos is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lazard Systematic Small 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 Lazard Us 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 Lazard Systematic Small 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 Lazard Us i.e., Lazard Us and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Lazard Us and Calamos Dynamic

Assuming the 90 days horizon Lazard Systematic Small is expected to under-perform the Calamos Dynamic. In addition to that, Lazard Us is 1.15 times more volatile than Calamos Dynamic Convertible. It trades about -0.21 of its total potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.05 per unit of volatility. If you would invest  2,323  in Calamos Dynamic Convertible on December 4, 2024 and sell it today you would lose (61.00) from holding Calamos Dynamic Convertible or give up 2.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Lazard Systematic Small  vs.  Calamos Dynamic Convertible

Lazard Systematic Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazard Systematic Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

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 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 Lazard Us and Calamos Dynamic

The main advantage of trading using opposite Lazard Us and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lazard Us 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 Lazard Systematic Small 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.