Correlation Between Calamos Dynamic and Nationwide Investor
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nationwide Investor 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 Investor 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 Investor Destinations, you can compare the effects of market volatilities on Calamos Dynamic and Nationwide Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nationwide Investor.
Diversification Opportunities for Calamos Dynamic and Nationwide Investor
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Nationwide is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nationwide Investor Destinatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Investor 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Investor has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nationwide Investor go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Nationwide Investor
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 1.42 times more return on investment than Nationwide Investor. However, Calamos Dynamic is 1.42 times more volatile than Nationwide Investor Destinations. It trades about 0.07 of its potential returns per unit of risk. Nationwide Investor Destinations is currently generating about 0.1 per unit of risk. If you would invest 1,684 in Calamos Dynamic Convertible on September 14, 2024 and sell it today you would earn a total of 712.00 from holding Calamos Dynamic Convertible or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Nationwide Investor Destinatio
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Nationwide Investor |
Calamos Dynamic and Nationwide Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Nationwide Investor
The main advantage of trading using opposite Calamos Dynamic and Nationwide Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nationwide Investor 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 Investor will offset losses from the drop in Nationwide Investor'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 Investor vs. Advent Claymore Convertible | Nationwide Investor vs. Calamos Dynamic Convertible | Nationwide Investor vs. Gabelli Convertible And | Nationwide Investor vs. Fidelity Sai 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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