Correlation Between Calamos Dynamic and Fidelity Convertible

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

Diversification Opportunities for Calamos Dynamic and Fidelity Convertible

0.47

Correlation Coefficient

Calamos Dynamic  Fidelity Convertible

Very weak diversification

The 3 months correlation between Calamos and Fidelity is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Fidelity Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Convertible 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 Fidelity Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Convertible has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Fidelity Convertible go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Fidelity Convertible

Considering the 90-day investment horizon Calamos Dynamic is expected to generate 66.62 times less return on investment than Fidelity Convertible. In addition to that, Calamos Dynamic is 1.47 times more volatile than Fidelity Vertible Securities. It trades about 0.0 of its total potential returns per unit of risk. Fidelity Vertible Securities is currently generating about 0.45 per unit of volatility. If you would invest  3,507  in Fidelity Vertible Securities on August 26, 2024 and sell it today you would earn a total of  237.00  from holding Fidelity Vertible Securities or generate 6.76% return on investment over 90 days.

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

Calamos Dynamic Convertible  vs.  Fidelity Vertible Securities

Calamos Dynamic Conv

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dynamic Convertible are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Fidelity Convertible

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Vertible Securities are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Convertible may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Calamos Dynamic and Fidelity Convertible

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

The idea behind Calamos Dynamic Convertible and Fidelity Vertible Securities 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..