Correlation Between Calamos Dynamic and Balanced Fund

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

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

Diversification Opportunities for Calamos Dynamic and Balanced Fund

-0.01

Correlation Coefficient

Calamos Dynamic  Balanced Fund

Good diversification

The 3 months correlation between Calamos and Balanced is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Balanced Fund Adviser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Adviser and Calamos Dynamic 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 Dynamic Convertible are associated (or correlated) with Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Adviser has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Balanced Fund go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Balanced Fund

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.36 times more return on investment than Balanced Fund. However, Calamos Dynamic Convertible is 2.8 times less risky than Balanced Fund. It trades about -0.09 of its potential returns per unit of risk. Balanced Fund Adviser is currently generating about -0.19 per unit of risk. If you would invest  2,439  in Calamos Dynamic Convertible on September 14, 2024 and sell it today you would lose (43.00) from holding Calamos Dynamic Convertible or give up 1.76% of portfolio value over 90 days.

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

Calamos Dynamic Convertible  vs.  Balanced Fund Adviser

Calamos Dynamic Conv

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dynamic Convertible are ranked lower than 1 (%) 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.

Balanced Fund Adviser

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Balanced Fund Adviser has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calamos Dynamic and Balanced Fund

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

The idea behind Calamos Dynamic Convertible and Balanced Fund Adviser 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..