Correlation Between Calamos Dynamic and Nationwide Highmark
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nationwide Highmark 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 Highmark 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 Highmark Bond, you can compare the effects of market volatilities on Calamos Dynamic and Nationwide Highmark 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 Highmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nationwide Highmark.
Diversification Opportunities for Calamos Dynamic and Nationwide Highmark
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Nationwide is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nationwide Highmark Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Highmark Bond 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 Highmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Highmark Bond has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nationwide Highmark go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Nationwide Highmark
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 2.88 times more return on investment than Nationwide Highmark. However, Calamos Dynamic is 2.88 times more volatile than Nationwide Highmark Bond. It trades about 0.13 of its potential returns per unit of risk. Nationwide Highmark Bond is currently generating about 0.07 per unit of risk. If you would invest 1,729 in Calamos Dynamic Convertible on September 4, 2024 and sell it today you would earn a total of 661.00 from holding Calamos Dynamic Convertible or generate 38.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Nationwide Highmark Bond
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Nationwide Highmark Bond |
Calamos Dynamic and Nationwide Highmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Nationwide Highmark
The main advantage of trading using opposite Calamos Dynamic and Nationwide Highmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nationwide Highmark 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 Highmark will offset losses from the drop in Nationwide Highmark'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 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |