Correlation Between Calamos Dynamic and Nuveen Nwq
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nuveen Nwq 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 Nwq 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 Nwq Multi Cap, you can compare the effects of market volatilities on Calamos Dynamic and Nuveen Nwq 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 Nwq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nuveen Nwq.
Diversification Opportunities for Calamos Dynamic and Nuveen Nwq
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Nuveen is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nuveen Nwq Multi Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Nwq Multi 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 Nwq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Nwq Multi has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nuveen Nwq go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Nuveen Nwq
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 20.63 times less return on investment than Nuveen Nwq. In addition to that, Calamos Dynamic is 1.04 times more volatile than Nuveen Nwq Multi Cap. It trades about 0.01 of its total potential returns per unit of risk. Nuveen Nwq Multi Cap is currently generating about 0.31 per unit of volatility. If you would invest 5,039 in Nuveen Nwq Multi Cap on September 3, 2024 and sell it today you would earn a total of 355.00 from holding Nuveen Nwq Multi Cap or generate 7.05% 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 Nwq Multi Cap
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Nuveen Nwq Multi |
Calamos Dynamic and Nuveen Nwq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Nuveen Nwq
The main advantage of trading using opposite Calamos Dynamic and Nuveen Nwq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nuveen Nwq 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 Nwq will offset losses from the drop in Nuveen Nwq'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 Nwq vs. Advent Claymore Convertible | Nuveen Nwq vs. Virtus Convertible | Nuveen Nwq vs. Lord Abbett Convertible | Nuveen Nwq vs. Calamos Dynamic Convertible |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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