Correlation Between Calamos Dynamic and Nuveen Quality
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nuveen Quality 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 Quality 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 Quality Municipal, you can compare the effects of market volatilities on Calamos Dynamic and Nuveen Quality 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 Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nuveen Quality.
Diversification Opportunities for Calamos Dynamic and Nuveen Quality
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Nuveen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nuveen Quality Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Quality Municipal 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 Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Quality Municipal has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nuveen Quality go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Nuveen Quality
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Nuveen Quality. In addition to that, Calamos Dynamic is 4.06 times more volatile than Nuveen Quality Municipal. It trades about -0.15 of its total potential returns per unit of risk. Nuveen Quality Municipal is currently generating about 0.26 per unit of volatility. If you would invest 1,291 in Nuveen Quality Municipal on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Nuveen Quality Municipal or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Nuveen Quality Municipal
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Nuveen Quality Municipal |
Calamos Dynamic and Nuveen Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Nuveen Quality
The main advantage of trading using opposite Calamos Dynamic and Nuveen Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nuveen Quality 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 Quality will offset losses from the drop in Nuveen Quality'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 Quality vs. Hennessy Bp Energy | Nuveen Quality vs. Adams Natural Resources | Nuveen Quality vs. Invesco Energy Fund | Nuveen Quality vs. Franklin Natural Resources |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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