Correlation Between DTF Tax and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both DTF Tax and Calamos Strategic 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 Strategic 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 Strategic Total, you can compare the effects of market volatilities on DTF Tax and Calamos Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of DTF Tax and Calamos Strategic.
Diversification Opportunities for DTF Tax and Calamos Strategic
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DTF and Calamos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding DTF Tax Free and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of DTF Tax i.e., DTF Tax and Calamos Strategic go up and down completely randomly.
Pair Corralation between DTF Tax and Calamos Strategic
Considering the 90-day investment horizon DTF Tax is expected to generate 3.39 times less return on investment than Calamos Strategic. But when comparing it to its historical volatility, DTF Tax Free is 2.07 times less risky than Calamos Strategic. It trades about 0.09 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,753 in Calamos Strategic Total on August 28, 2024 and sell it today you would earn a total of 48.00 from holding Calamos Strategic Total or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DTF Tax Free vs. Calamos Strategic Total
Performance |
| Timeline |
| DTF Tax Free |
| Calamos Strategic Total |
DTF Tax and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DTF Tax and Calamos Strategic
The main advantage of trading using opposite DTF Tax and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DTF Tax position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic'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 Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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