Correlation Between Calamos Market and Nuveen Kansas
Can any of the company-specific risk be diversified away by investing in both Calamos Market and Nuveen Kansas 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 Market and Nuveen Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and Nuveen Kansas Municipal, you can compare the effects of market volatilities on Calamos Market and Nuveen Kansas 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 Market with a short position of Nuveen Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Nuveen Kansas.
Diversification Opportunities for Calamos Market and Nuveen Kansas
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Nuveen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Nuveen Kansas Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Kansas Municipal and Calamos Market 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 Market Neutral are associated (or correlated) with Nuveen Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Kansas Municipal has no effect on the direction of Calamos Market i.e., Calamos Market and Nuveen Kansas go up and down completely randomly.
Pair Corralation between Calamos Market and Nuveen Kansas
Assuming the 90 days horizon Calamos Market is expected to generate 2.41 times less return on investment than Nuveen Kansas. But when comparing it to its historical volatility, Calamos Market Neutral is 2.78 times less risky than Nuveen Kansas. It trades about 0.29 of its potential returns per unit of risk. Nuveen Kansas Municipal is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 993.00 in Nuveen Kansas Municipal on September 5, 2024 and sell it today you would earn a total of 16.00 from holding Nuveen Kansas Municipal or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Nuveen Kansas Municipal
Performance |
| Timeline |
| Calamos Market Neutral |
| Nuveen Kansas Municipal |
Calamos Market and Nuveen Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Nuveen Kansas
The main advantage of trading using opposite Calamos Market and Nuveen Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, Nuveen Kansas 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 Kansas will offset losses from the drop in Nuveen Kansas' long position.| Calamos Market vs. Innealta Capital Sector | Calamos Market vs. Calamos Antetokounmpo Sustainable | Calamos Market vs. Calamos Opportunistic Value | Calamos Market vs. Calamos Opportunistic Value |
| Nuveen Kansas vs. Kinetics Market Opportunities | Nuveen Kansas vs. Locorr Market Trend | Nuveen Kansas vs. Rbc Emerging Markets | Nuveen Kansas vs. Calamos Market Neutral |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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