Correlation Between Calamos Dynamic and Nationwide Geneva
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nationwide Geneva 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 Nationwide Geneva 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 Nationwide Geneva Mid, you can compare the effects of market volatilities on Calamos Dynamic and Nationwide Geneva 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 Nationwide Geneva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nationwide Geneva.
Diversification Opportunities for Calamos Dynamic and Nationwide Geneva
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Nationwide is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nationwide Geneva Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Geneva Mid 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 Nationwide Geneva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Geneva Mid has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nationwide Geneva go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Nationwide Geneva
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.39 times less return on investment than Nationwide Geneva. But when comparing it to its historical volatility, Calamos Dynamic Convertible is 1.4 times less risky than Nationwide Geneva. It trades about 0.06 of its potential returns per unit of risk. Nationwide Geneva Mid is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 991.00 in Nationwide Geneva Mid on September 3, 2024 and sell it today you would earn a total of 430.00 from holding Nationwide Geneva Mid or generate 43.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Nationwide Geneva Mid
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Nationwide Geneva Mid |
Calamos Dynamic and Nationwide Geneva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Nationwide Geneva
The main advantage of trading using opposite Calamos Dynamic and Nationwide Geneva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nationwide Geneva 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 Nationwide Geneva will offset losses from the drop in Nationwide Geneva'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 |
| Nationwide Geneva vs. T Rowe Price | Nationwide Geneva vs. T Rowe Price | Nationwide Geneva vs. T Rowe Price | Nationwide Geneva vs. T Rowe Price |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |