Correlation Between Calamos Dynamic and World Core

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

Diversification Opportunities for Calamos Dynamic and World Core

-0.23

Correlation Coefficient

Calamos Dynamic  World Core

Very good diversification

The 3 months correlation between Calamos and World is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and World Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Core Equity 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 World Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Core Equity has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and World Core go up and down completely randomly.

Pair Corralation between Calamos Dynamic and World Core

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the World Core. In addition to that, Calamos Dynamic is 1.21 times more volatile than World Core Equity. It trades about -0.08 of its total potential returns per unit of risk. World Core Equity is currently generating about 0.22 per unit of volatility. If you would invest  2,421  in World Core Equity on May 4, 2025 and sell it today you would earn a total of  221.00  from holding World Core Equity or generate 9.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  World Core Equity

Calamos Dynamic Conv

Risk-Adjusted Performance

Very Weak

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.

World Core Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in World Core Equity are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, World Core may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Calamos Dynamic and World Core

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

The idea behind Calamos Dynamic Convertible and World Core Equity 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.