Correlation Between Calamos Dynamic and Dataax

Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Dataax 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 Dataax 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 Dataax, you can compare the effects of market volatilities on Calamos Dynamic and Dataax 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 Dataax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Dataax.

Diversification Opportunities for Calamos Dynamic and Dataax

-0.1

Correlation Coefficient

Calamos Dynamic  Dataax

Good diversification

The 3 months correlation between Calamos and Dataax is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Dataax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataax 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 Dataax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataax has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Dataax go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Dataax

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Dataax. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Dynamic Convertible is 1.43 times less risky than Dataax. The fund trades about -0.11 of its potential returns per unit of risk. The Dataax is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  929.00  in Dataax on May 18, 2025 and sell it today you would earn a total of  151.00  from holding Dataax or generate 16.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  Dataax

Calamos Dynamic Conv

Risk-Adjusted Performance

Weakest

Over the last 90 days Calamos Dynamic Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Dataax

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dataax are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Dataax showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calamos Dynamic and Dataax

The main advantage of trading using opposite Calamos Dynamic and Dataax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Dataax 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 Dataax will offset losses from the drop in Dataax's long position.

The idea behind Calamos Dynamic Convertible and Dataax 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.

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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.