Correlation Between Calamos Strategic and Northeast Investors
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Northeast Investors 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 Strategic and Northeast Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Strategic Total and Northeast Investors Trust, you can compare the effects of market volatilities on Calamos Strategic and Northeast Investors 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 Strategic with a short position of Northeast Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Northeast Investors.
Diversification Opportunities for Calamos Strategic and Northeast Investors
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Northeast is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Northeast Investors Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northeast Investors Trust and Calamos Strategic 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 Strategic Total are associated (or correlated) with Northeast Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northeast Investors Trust has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Northeast Investors go up and down completely randomly.
Pair Corralation between Calamos Strategic and Northeast Investors
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 3.44 times more return on investment than Northeast Investors. However, Calamos Strategic is 3.44 times more volatile than Northeast Investors Trust. It trades about 0.18 of its potential returns per unit of risk. Northeast Investors Trust is currently generating about 0.26 per unit of risk. If you would invest 1,701 in Calamos Strategic Total on August 26, 2024 and sell it today you would earn a total of 100.00 from holding Calamos Strategic Total or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Northeast Investors Trust
Performance |
| Timeline |
| Calamos Strategic Total |
| Northeast Investors Trust |
Calamos Strategic and Northeast Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Northeast Investors
The main advantage of trading using opposite Calamos Strategic and Northeast Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Northeast Investors 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 Northeast Investors will offset losses from the drop in Northeast Investors' long position.| Calamos Strategic vs. Allspring Income Opportunities | Calamos Strategic vs. Allspring Global Dividend | Calamos Strategic vs. Blackstone Gso Senior | Calamos Strategic vs. John Hancock Preferred |
| Northeast Investors vs. Guggenheim Large Cap | Northeast Investors vs. Vanguard Windsor Fund | Northeast Investors vs. Goldman Sachs Tax Advantaged | Northeast Investors vs. Vanguard Explorer Fund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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