Correlation Between Tiaa Cref and Calamos Dynamic

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

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

Diversification Opportunities for Tiaa Cref and Calamos Dynamic

0.36

Correlation Coefficient

Tiaa Cref  Calamos Dynamic

Weak diversification

The 3 months correlation between Tiaa and Calamos is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Emerging Markets 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 Tiaa Cref 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 Tiaa Cref Emerging Markets 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 Tiaa Cref i.e., Tiaa Cref and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Tiaa Cref and Calamos Dynamic

Assuming the 90 days horizon Tiaa Cref Emerging Markets is expected to under-perform the Calamos Dynamic. But the mutual fund apears to be less risky and, when comparing its historical volatility, Tiaa Cref Emerging Markets is 1.24 times less risky than Calamos Dynamic. The mutual fund trades about -0.39 of its potential returns per unit of risk. The Calamos Dynamic Convertible is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  2,332  in Calamos Dynamic Convertible on October 7, 2024 and sell it today you would earn a total of  99.00  from holding Calamos Dynamic Convertible or generate 4.25% return on investment over 90 days.

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

Tiaa Cref Emerging Markets  vs.  Calamos Dynamic Convertible

Tiaa Cref Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tiaa Cref Emerging Markets 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 February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

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

Pair Trading with Tiaa Cref and Calamos Dynamic

The main advantage of trading using opposite Tiaa Cref and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref 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 Tiaa Cref Emerging Markets 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.