Correlation Between Calamos Strategic and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Nuveen California 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 Nuveen California 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 Nuveen California Select, you can compare the effects of market volatilities on Calamos Strategic and Nuveen California 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 Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Nuveen California.
Diversification Opportunities for Calamos Strategic and Nuveen California
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Nuveen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Nuveen California Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California Select 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 Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California Select has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Nuveen California go up and down completely randomly.
Pair Corralation between Calamos Strategic and Nuveen California
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 2.3 times more return on investment than Nuveen California. However, Calamos Strategic is 2.3 times more volatile than Nuveen California Select. It trades about 0.18 of its potential returns per unit of risk. Nuveen California Select is currently generating about 0.23 per unit of risk. If you would invest 1,771 in Calamos Strategic Total on November 1, 2024 and sell it today you would earn a total of 55.00 from holding Calamos Strategic Total or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Nuveen California Select
Performance |
| Timeline |
| Calamos Strategic Total |
| Nuveen California Select |
Calamos Strategic and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Nuveen California
The main advantage of trading using opposite Calamos Strategic and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Nuveen California 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 California will offset losses from the drop in Nuveen California's long position.| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
| Nuveen California vs. Eaton Vance National | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade | Nuveen California vs. Federated Premier Municipal |
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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