Correlation Between Calamos Dynamic and Sp Midcap
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Sp Midcap 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 Sp Midcap 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 Sp Midcap Index, you can compare the effects of market volatilities on Calamos Dynamic and Sp Midcap 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 Sp Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Sp Midcap.
Diversification Opportunities for Calamos Dynamic and Sp Midcap
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and SPMIX is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Sp Midcap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sp Midcap Index 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 Sp Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sp Midcap Index has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Sp Midcap go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Sp Midcap
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 2.02 times less return on investment than Sp Midcap. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.67 times less risky than Sp Midcap. It trades about 0.13 of its potential returns per unit of risk. Sp Midcap Index is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,445 in Sp Midcap Index on May 30, 2025 and sell it today you would earn a total of 220.00 from holding Sp Midcap Index or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Sp Midcap Index
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Sp Midcap Index |
Calamos Dynamic and Sp Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Sp Midcap
The main advantage of trading using opposite Calamos Dynamic and Sp Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Sp Midcap 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 Sp Midcap will offset losses from the drop in Sp Midcap's long position.| Calamos Dynamic vs. Aberdeen Income Credit | Calamos Dynamic vs. Special Opportunities Closed | Calamos Dynamic vs. RiverNorthDoubleLine Strategic Opportunity | Calamos Dynamic vs. Clough Global Allocation |
| Sp Midcap vs. Global Real Estate | Sp Midcap vs. Amg Managers Centersquare | Sp Midcap vs. Vy Clarion Real | Sp Midcap vs. Fidelity Real Estate |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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