Correlation Between Cushing Mlp and Calamos Dynamic

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

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

Diversification Opportunities for Cushing Mlp and Calamos Dynamic

0.45

Correlation Coefficient

Cushing Mlp  Calamos Dynamic

Very weak diversification

The 3 months correlation between Cushing and Calamos is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cushing Mlp Total 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 Cushing Mlp 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 Cushing Mlp Total 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 Cushing Mlp i.e., Cushing Mlp and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Cushing Mlp and Calamos Dynamic

Considering the 90-day investment horizon Cushing Mlp Total is expected to generate 1.34 times more return on investment than Calamos Dynamic. However, Cushing Mlp is 1.34 times more volatile than Calamos Dynamic Convertible. It trades about 0.04 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.19 per unit of risk. If you would invest  4,276  in Cushing Mlp Total on December 29, 2024 and sell it today you would earn a total of  131.00  from holding Cushing Mlp Total or generate 3.06% return on investment over 90 days.

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

Cushing Mlp Total  vs.  Calamos Dynamic Convertible

Cushing Mlp Total

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cushing Mlp Total are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable basic indicators, Cushing Mlp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated 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 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 Cushing Mlp and Calamos Dynamic

The main advantage of trading using opposite Cushing Mlp and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cushing Mlp 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 Cushing Mlp Total 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.