Correlation Between DTF Tax and Calamos Global
Can any of the company-specific risk be diversified away by investing in both DTF Tax and Calamos Global 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 DTF Tax and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DTF Tax Free and Calamos Global Dynamic, you can compare the effects of market volatilities on DTF Tax and Calamos Global 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 DTF Tax with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of DTF Tax and Calamos Global.
Diversification Opportunities for DTF Tax and Calamos Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between DTF and Calamos is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding DTF Tax Free and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic and DTF Tax 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 DTF Tax Free are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Dynamic has no effect on the direction of DTF Tax i.e., DTF Tax and Calamos Global go up and down completely randomly.
Pair Corralation between DTF Tax and Calamos Global
Considering the 90-day investment horizon DTF Tax Free is expected to generate 0.5 times more return on investment than Calamos Global. However, DTF Tax Free is 2.01 times less risky than Calamos Global. It trades about 0.09 of its potential returns per unit of risk. Calamos Global Dynamic is currently generating about -0.04 per unit of risk. If you would invest 1,117 in DTF Tax Free on August 27, 2024 and sell it today you would earn a total of 9.00 from holding DTF Tax Free or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DTF Tax Free vs. Calamos Global Dynamic
Performance |
| Timeline |
| DTF Tax Free |
| Calamos Global Dynamic |
DTF Tax and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DTF Tax and Calamos Global
The main advantage of trading using opposite DTF Tax and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DTF Tax position performs unexpectedly, Calamos Global 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 Calamos Global will offset losses from the drop in Calamos Global's long position.| DTF Tax vs. PowerUp Acquisition Corp | DTF Tax vs. Aurora Innovation | DTF Tax vs. HUMANA INC | DTF Tax vs. Aquagold International |
| Calamos Global vs. Calamos Convertible And | Calamos Global vs. Calamos Strategic Total | Calamos Global vs. Calamos Dynamic Convertible | Calamos Global vs. Calamos LongShort Equity |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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