Correlation Between Calamos Dynamic and Nuveen Mid
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nuveen Mid 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 Nuveen Mid 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 Nuveen Mid Cap, you can compare the effects of market volatilities on Calamos Dynamic and Nuveen Mid 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 Nuveen Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nuveen Mid.
Diversification Opportunities for Calamos Dynamic and Nuveen Mid
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Nuveen is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nuveen Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mid Cap 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 Nuveen Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mid Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nuveen Mid go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Nuveen Mid
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 2.74 times less return on investment than Nuveen Mid. In addition to that, Calamos Dynamic is 1.15 times more volatile than Nuveen Mid Cap. It trades about 0.05 of its total potential returns per unit of risk. Nuveen Mid Cap is currently generating about 0.16 per unit of volatility. If you would invest 5,714 in Nuveen Mid Cap on September 2, 2024 and sell it today you would earn a total of 521.00 from holding Nuveen Mid Cap or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Nuveen Mid Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Nuveen Mid Cap |
Calamos Dynamic and Nuveen Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Nuveen Mid
The main advantage of trading using opposite Calamos Dynamic and Nuveen Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nuveen Mid 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 Mid will offset losses from the drop in Nuveen Mid's long position.| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
| Nuveen Mid vs. Short Term Government Fund | Nuveen Mid vs. Dws Government Money | Nuveen Mid vs. Franklin Adjustable Government | Nuveen Mid vs. Government Securities Fund |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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