Correlation Between Calamos Dynamic and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nuveen Amt-free 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 Amt-free 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 Amt Free Municipal, you can compare the effects of market volatilities on Calamos Dynamic and Nuveen Amt-free 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 Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nuveen Amt-free.
Diversification Opportunities for Calamos Dynamic and Nuveen Amt-free
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Nuveen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free 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 Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Nuveen Amt-free
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.67 times more return on investment than Nuveen Amt-free. However, Calamos Dynamic is 1.67 times more volatile than Nuveen Amt Free Municipal. It trades about 0.07 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.04 per unit of risk. If you would invest 1,750 in Calamos Dynamic Convertible on August 27, 2024 and sell it today you would earn a total of 701.00 from holding Calamos Dynamic Convertible or generate 40.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Nuveen Amt Free |
Calamos Dynamic and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Nuveen Amt-free
The main advantage of trading using opposite Calamos Dynamic and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nuveen Amt-free 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 Amt-free will offset losses from the drop in Nuveen Amt-free'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 Amt-free vs. Nuveen Municipal Credit | Nuveen Amt-free vs. Nuveen Amt Free | Nuveen Amt-free vs. Nuveen Municipal Value | Nuveen Amt-free vs. Nuveen Municipal High |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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