Correlation Between Stadion Tactical and Calamos Dynamic

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

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

Diversification Opportunities for Stadion Tactical and Calamos Dynamic

-0.49

Correlation Coefficient

Stadion Tactical  Calamos Dynamic

Very good diversification

The 3 months correlation between Stadion and Calamos is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Stadion Tactical Growth 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 Stadion Tactical 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 Stadion Tactical Growth 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 Stadion Tactical i.e., Stadion Tactical and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Stadion Tactical and Calamos Dynamic

Assuming the 90 days horizon Stadion Tactical Growth is expected to under-perform the Calamos Dynamic. In addition to that, Stadion Tactical is 1.43 times more volatile than Calamos Dynamic Convertible. It trades about -0.18 of its total potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.52 per unit of volatility. If you would invest  2,349  in Calamos Dynamic Convertible on September 28, 2024 and sell it today you would earn a total of  143.00  from holding Calamos Dynamic Convertible or generate 6.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Stadion Tactical Growth  vs.  Calamos Dynamic Convertible

Stadion Tactical Growth

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Stadion Tactical Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Stadion Tactical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the 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 Stadion Tactical and Calamos Dynamic

The main advantage of trading using opposite Stadion Tactical and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stadion Tactical 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 Stadion Tactical Growth 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.