Correlation Between Calamos Dividend and Maryland Short-term

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

By analyzing existing cross correlation between Calamos Dividend Growth and Maryland Short Term Tax Free, you can compare the effects of market volatilities on Calamos Dividend and Maryland Short-term 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 Dividend with a short position of Maryland Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dividend and Maryland Short-term.

Diversification Opportunities for Calamos Dividend and Maryland Short-term

0.15

Correlation Coefficient

Calamos Dividend  Maryland Short-term

Average diversification

The 3 months correlation between Calamos and Maryland is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dividend Growth and Maryland Short Term Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maryland Short Term and Calamos Dividend 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 Dividend Growth are associated (or correlated) with Maryland Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maryland Short Term has no effect on the direction of Calamos Dividend i.e., Calamos Dividend and Maryland Short-term go up and down completely randomly.

Pair Corralation between Calamos Dividend and Maryland Short-term

Assuming the 90 days horizon Calamos Dividend Growth is expected to generate 6.94 times more return on investment than Maryland Short-term. However, Calamos Dividend is 6.94 times more volatile than Maryland Short Term Tax Free. It trades about 0.19 of its potential returns per unit of risk. Maryland Short Term Tax Free is currently generating about 0.06 per unit of risk. If you would invest  1,705  in Calamos Dividend Growth on September 3, 2024 and sell it today you would earn a total of  155.00  from holding Calamos Dividend Growth or generate 9.09% return on investment over 90 days.

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

Calamos Dividend Growth  vs.  Maryland Short Term Tax Free

Calamos Dividend Growth

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dividend Growth are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calamos Dividend may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Maryland Short Term

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maryland Short Term Tax Free are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Maryland Short-term is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Dividend and Maryland Short-term

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

The idea behind Calamos Dividend Growth and Maryland Short Term Tax Free 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.