Correlation Between Calamos Dynamic and Extended Market
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Extended Market 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 Extended Market 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 Extended Market Index, you can compare the effects of market volatilities on Calamos Dynamic and Extended Market 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 Extended Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Extended Market.
Diversification Opportunities for Calamos Dynamic and Extended Market
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Extended is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Extended Market Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extended Market 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 Extended Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extended Market Index has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Extended Market go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Extended Market
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 2.05 times less return on investment than Extended Market. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.85 times less risky than Extended Market. It trades about 0.15 of its potential returns per unit of risk. Extended Market Index is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,970 in Extended Market Index on June 4, 2025 and sell it today you would earn a total of 212.00 from holding Extended Market Index or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Extended Market Index
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Extended Market Index |
Calamos Dynamic and Extended Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Extended Market
The main advantage of trading using opposite Calamos Dynamic and Extended Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Extended Market 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 Extended Market will offset losses from the drop in Extended Market's long position.| Calamos Dynamic vs. Blackrock Enhanced Capital | Calamos Dynamic vs. Pimco Corporate Income | Calamos Dynamic vs. Pimco Income Strategy | Calamos Dynamic vs. Pimco Income Strategy |
| Extended Market vs. Ab Bond Inflation | Extended Market vs. Ab Bond Inflation | Extended Market vs. T Rowe Price | Extended Market vs. Ab Bond Inflation |
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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