Correlation Between Calamos Short-term and Nationwide Investor
Can any of the company-specific risk be diversified away by investing in both Calamos Short-term and Nationwide Investor 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 Short-term and Nationwide Investor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Short Term Bond and Nationwide Investor Destinations, you can compare the effects of market volatilities on Calamos Short-term and Nationwide Investor 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 Short-term with a short position of Nationwide Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Short-term and Nationwide Investor.
Diversification Opportunities for Calamos Short-term and Nationwide Investor
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calamos and Nationwide is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Short Term Bond and Nationwide Investor Destinatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Investor and Calamos Short-term 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 Short Term Bond are associated (or correlated) with Nationwide Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Investor has no effect on the direction of Calamos Short-term i.e., Calamos Short-term and Nationwide Investor go up and down completely randomly.
Pair Corralation between Calamos Short-term and Nationwide Investor
Assuming the 90 days horizon Calamos Short-term is expected to generate 3.74 times less return on investment than Nationwide Investor. But when comparing it to its historical volatility, Calamos Short Term Bond is 2.4 times less risky than Nationwide Investor. It trades about 0.04 of its potential returns per unit of risk. Nationwide Investor Destinations is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Nationwide Investor Destinations on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Nationwide Investor Destinations or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Short Term Bond vs. Nationwide Investor Destinatio
Performance |
| Timeline |
| Calamos Short Term |
| Nationwide Investor |
Calamos Short-term and Nationwide Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Short-term and Nationwide Investor
The main advantage of trading using opposite Calamos Short-term and Nationwide Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Short-term position performs unexpectedly, Nationwide Investor 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 Nationwide Investor will offset losses from the drop in Nationwide Investor's long position.| Calamos Short-term vs. Lord Abbett Small | Calamos Short-term vs. Heartland Value Plus | Calamos Short-term vs. Mid Cap Value Profund | Calamos Short-term vs. Vanguard Small Cap Value |
| Nationwide Investor vs. Nationwide Growth Fund | Nationwide Investor vs. Victory Rs Small | Nationwide Investor vs. Kinetics Small Cap | Nationwide Investor vs. Chase Growth 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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