Correlation Between Growth Allocation and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Growth Allocation 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 Growth Allocation and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Allocation Fund and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Growth Allocation 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 Growth Allocation with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Allocation and Calamos Dynamic.
Diversification Opportunities for Growth Allocation and Calamos Dynamic
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Growth and Calamos is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Growth Allocation Fund 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 Growth Allocation 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 Growth Allocation Fund 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 Growth Allocation i.e., Growth Allocation and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Growth Allocation and Calamos Dynamic
Assuming the 90 days horizon Growth Allocation is expected to generate 1.63 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, Growth Allocation Fund is 1.92 times less risky than Calamos Dynamic. It trades about 0.09 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,043 in Calamos Dynamic Convertible on September 8, 2025 and sell it today you would earn a total of 107.00 from holding Calamos Dynamic Convertible or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Allocation Fund vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Growth Allocation |
| Calamos Dynamic Conv |
Growth Allocation and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Allocation and Calamos Dynamic
The main advantage of trading using opposite Growth Allocation and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Allocation 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.| Growth Allocation vs. Morningstar Defensive Bond | Growth Allocation vs. Nuveen High Yield | Growth Allocation vs. Pace Strategic Fixed | Growth Allocation vs. Old Westbury Fixed |
| Calamos Dynamic vs. Central Europe Russia | Calamos Dynamic vs. John Hancock Financial | Calamos Dynamic vs. Korea Closed | Calamos Dynamic vs. Clearbridge Energy Mlp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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