Correlation Between Calamos Dynamic and Vanguard Mid-cap
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Vanguard Mid-cap 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 Vanguard Mid-cap 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 Vanguard Mid Cap Index, you can compare the effects of market volatilities on Calamos Dynamic and Vanguard Mid-cap 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 Vanguard Mid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Vanguard Mid-cap.
Diversification Opportunities for Calamos Dynamic and Vanguard Mid-cap
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Vanguard is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Vanguard Mid Cap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Mid Cap 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 Vanguard Mid-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Mid Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Vanguard Mid-cap go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Vanguard Mid-cap
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.43 times less return on investment than Vanguard Mid-cap. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.24 times less risky than Vanguard Mid-cap. It trades about 0.15 of its potential returns per unit of risk. Vanguard Mid Cap Index is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 36,402 in Vanguard Mid Cap Index on June 2, 2025 and sell it today you would earn a total of 2,738 from holding Vanguard Mid Cap Index or generate 7.52% 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. Vanguard Mid Cap Index
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Vanguard Mid Cap |
Calamos Dynamic and Vanguard Mid-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Vanguard Mid-cap
The main advantage of trading using opposite Calamos Dynamic and Vanguard Mid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Vanguard Mid-cap 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 Vanguard Mid-cap will offset losses from the drop in Vanguard Mid-cap'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 |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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