Correlation Between Calamos Dynamic and First Trust
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and First Trust 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 First Trust 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 First Trust Preferred, you can compare the effects of market volatilities on Calamos Dynamic and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and First Trust.
Diversification Opportunities for Calamos Dynamic and First Trust
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and First is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and First Trust Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Preferred 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Preferred has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and First Trust go up and down completely randomly.
Pair Corralation between Calamos Dynamic and First Trust
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the First Trust. In addition to that, Calamos Dynamic is 5.84 times more volatile than First Trust Preferred. It trades about 0.0 of its total potential returns per unit of risk. First Trust Preferred is currently generating about 0.48 per unit of volatility. If you would invest 1,917 in First Trust Preferred on April 27, 2025 and sell it today you would earn a total of 77.00 from holding First Trust Preferred or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. First Trust Preferred
Performance |
| Timeline |
| Calamos Dynamic Conv |
| First Trust Preferred |
Calamos Dynamic and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and First Trust
The main advantage of trading using opposite Calamos Dynamic and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Calamos Dynamic vs. Calamos Convertible And | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos LongShort Equity |
| First Trust vs. Doubleline Emerging Markets | First Trust vs. Brandes Emerging Markets | First Trust vs. Siit Emerging Markets | First Trust vs. Fidelity New Markets |
Check out your portfolio center.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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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