Correlation Between Advent Claymore and Calamos Dynamic

Can any of the company-specific risk be diversified away by investing in both Advent Claymore 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 Advent Claymore and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advent Claymore Convertible and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Advent Claymore 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 Advent Claymore with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Claymore and Calamos Dynamic.

Diversification Opportunities for Advent Claymore and Calamos Dynamic

-0.28

Correlation Coefficient

Advent Claymore  Calamos Dynamic

Very good diversification

The 3 months correlation between Advent and Calamos is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Advent Claymore Convertible 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 Advent Claymore 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 Advent Claymore Convertible 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 Advent Claymore i.e., Advent Claymore and Calamos Dynamic go up and down completely randomly.

Pair Corralation between Advent Claymore and Calamos Dynamic

Assuming the 90 days horizon Advent Claymore Convertible is expected to generate 0.9 times more return on investment than Calamos Dynamic. However, Advent Claymore Convertible is 1.12 times less risky than Calamos Dynamic. It trades about 0.23 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.04 per unit of risk. If you would invest  1,164  in Advent Claymore Convertible on May 1, 2025 and sell it today you would earn a total of  118.00  from holding Advent Claymore Convertible or generate 10.14% return on investment over 90 days.

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

Advent Claymore Convertible  vs.  Calamos Dynamic Convertible

Advent Claymore Conv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Claymore Convertible are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Advent Claymore may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.

Pair Trading with Advent Claymore and Calamos Dynamic

The main advantage of trading using opposite Advent Claymore and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Claymore 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 Advent Claymore Convertible 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.