Correlation Between Nuveen California and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Nuveen California and Calamos Convertible 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 Nuveen California and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen California Select and Calamos Convertible Opportunities, you can compare the effects of market volatilities on Nuveen California and Calamos Convertible 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 Nuveen California with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and Calamos Convertible.
Diversification Opportunities for Nuveen California and Calamos Convertible
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and Calamos is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Select and Calamos Convertible Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and Nuveen California 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 Nuveen California Select are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Nuveen California i.e., Nuveen California and Calamos Convertible go up and down completely randomly.
Pair Corralation between Nuveen California and Calamos Convertible
Considering the 90-day investment horizon Nuveen California is expected to generate 2.6 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Nuveen California Select is 1.08 times less risky than Calamos Convertible. It trades about 0.03 of its potential returns per unit of risk. Calamos Convertible Opportunities is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 898.00 in Calamos Convertible Opportunities on August 24, 2024 and sell it today you would earn a total of 313.00 from holding Calamos Convertible Opportunities or generate 34.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen California Select vs. Calamos Convertible Opportunit
Performance |
| Timeline |
| Nuveen California Select |
| Calamos Convertible |
Nuveen California and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and Calamos Convertible
The main advantage of trading using opposite Nuveen California and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.| Nuveen California vs. Invesco High Income | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade | Nuveen California vs. Federated Premier Municipal |
| Calamos Convertible vs. MFS Investment Grade | Calamos Convertible vs. Eaton Vance National | Calamos Convertible vs. Blackrock Muniyield Quality | Calamos Convertible vs. Munivest 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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