Correlation Between Calamos Global and Nuveen Mortgage
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Nuveen Mortgage 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 Global and Nuveen Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Dynamic and Nuveen Mortgage Opportunity, you can compare the effects of market volatilities on Calamos Global and Nuveen Mortgage 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 Global with a short position of Nuveen Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Nuveen Mortgage.
Diversification Opportunities for Calamos Global and Nuveen Mortgage
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and Nuveen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Dynamic and Nuveen Mortgage Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mortgage Oppo and Calamos Global 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 Global Dynamic are associated (or correlated) with Nuveen Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mortgage Oppo has no effect on the direction of Calamos Global i.e., Calamos Global and Nuveen Mortgage go up and down completely randomly.
Pair Corralation between Calamos Global and Nuveen Mortgage
Considering the 90-day investment horizon Calamos Global is expected to generate 1.05 times less return on investment than Nuveen Mortgage. But when comparing it to its historical volatility, Calamos Global Dynamic is 1.23 times less risky than Nuveen Mortgage. It trades about 0.22 of its potential returns per unit of risk. Nuveen Mortgage Opportunity is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,790 in Nuveen Mortgage Opportunity on September 18, 2024 and sell it today you would earn a total of 41.00 from holding Nuveen Mortgage Opportunity or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Dynamic vs. Nuveen Mortgage Opportunity
Performance |
| Timeline |
| Calamos Global Dynamic |
| Nuveen Mortgage Oppo |
Calamos Global and Nuveen Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Nuveen Mortgage
The main advantage of trading using opposite Calamos Global and Nuveen Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Nuveen Mortgage 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 Mortgage will offset losses from the drop in Nuveen Mortgage's long position.| Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos Strategic Total | Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Calamos LongShort Equity |
| Nuveen Mortgage vs. Brandywineglobal Globalome Opportunities | Nuveen Mortgage vs. RiverNorth Specialty Finance | Nuveen Mortgage vs. Western Asset Mortgage | Nuveen Mortgage vs. Stone Harbor Emerging |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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