Correlation Between Calamos Convertible and Nuveen Real
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and Nuveen Real 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 Convertible and Nuveen Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Convertible And and Nuveen Real Asset, you can compare the effects of market volatilities on Calamos Convertible and Nuveen Real 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 Convertible with a short position of Nuveen Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and Nuveen Real.
Diversification Opportunities for Calamos Convertible and Nuveen Real
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Nuveen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible And and Nuveen Real Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Real Asset and Calamos Convertible 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 Convertible And are associated (or correlated) with Nuveen Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Real Asset has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and Nuveen Real go up and down completely randomly.
Pair Corralation between Calamos Convertible and Nuveen Real
Considering the 90-day investment horizon Calamos Convertible And is expected to generate 1.17 times more return on investment than Nuveen Real. However, Calamos Convertible is 1.17 times more volatile than Nuveen Real Asset. It trades about 0.16 of its potential returns per unit of risk. Nuveen Real Asset is currently generating about 0.09 per unit of risk. If you would invest 1,142 in Calamos Convertible And on September 12, 2024 and sell it today you would earn a total of 96.00 from holding Calamos Convertible And or generate 8.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Convertible And vs. Nuveen Real Asset
Performance |
Timeline |
Calamos Convertible And |
Nuveen Real Asset |
Calamos Convertible and Nuveen Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Convertible and Nuveen Real
The main advantage of trading using opposite Calamos Convertible and Nuveen Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, Nuveen Real 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 Nuveen Real will offset losses from the drop in Nuveen Real's long position.Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos Dynamic Convertible | Calamos Convertible vs. Calamos LongShort Equity |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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