Correlation Between Allianzgi Convertible and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible 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 Allianzgi Convertible and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Allianzgi Convertible 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 Allianzgi Convertible with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Calamos Dynamic.
Diversification Opportunities for Allianzgi Convertible and Calamos Dynamic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allianzgi and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income 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 Allianzgi Convertible 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 Allianzgi Convertible Income 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 Allianzgi Convertible i.e., Allianzgi Convertible and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Calamos Dynamic
Considering the 90-day investment horizon Allianzgi Convertible is expected to generate 1.16 times less return on investment than Calamos Dynamic. But when comparing it to its historical volatility, Allianzgi Convertible Income is 1.02 times less risky than Calamos Dynamic. It trades about 0.07 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 1,977 in Calamos Dynamic Convertible on August 26, 2025 and sell it today you would earn a total of 96.00 from holding Calamos Dynamic Convertible or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Allianzgi Convertible |
| Calamos Dynamic Conv |
Allianzgi Convertible and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Calamos Dynamic
The main advantage of trading using opposite Allianzgi Convertible and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible 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.The idea behind Allianzgi Convertible Income and Calamos Dynamic Convertible pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Calamos Dynamic vs. Rationalpier 88 Convertible | Calamos Dynamic vs. Absolute Convertible Arbitrage | Calamos Dynamic vs. Fidelity Sai Convertible | Calamos Dynamic vs. Advent Claymore Convertible |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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