Correlation Between Nuveen California and Calamos LongShort
Can any of the company-specific risk be diversified away by investing in both Nuveen California and Calamos LongShort 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 LongShort 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 LongShort Equity, you can compare the effects of market volatilities on Nuveen California and Calamos LongShort 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 LongShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and Calamos LongShort.
Diversification Opportunities for Nuveen California and Calamos LongShort
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nuveen and Calamos is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Select and Calamos LongShort Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos LongShort Equity 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 LongShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos LongShort Equity has no effect on the direction of Nuveen California i.e., Nuveen California and Calamos LongShort go up and down completely randomly.
Pair Corralation between Nuveen California and Calamos LongShort
Considering the 90-day investment horizon Nuveen California Select is expected to under-perform the Calamos LongShort. In addition to that, Nuveen California is 1.0 times more volatile than Calamos LongShort Equity. It trades about -0.15 of its total potential returns per unit of risk. Calamos LongShort Equity is currently generating about 0.02 per unit of volatility. If you would invest 1,551 in Calamos LongShort Equity on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Calamos LongShort Equity or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nuveen California Select vs. Calamos LongShort Equity
Performance |
| Timeline |
| Nuveen California Select |
| Calamos LongShort Equity |
Nuveen California and Calamos LongShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and Calamos LongShort
The main advantage of trading using opposite Nuveen California and Calamos LongShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, Calamos LongShort 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 LongShort will offset losses from the drop in Calamos LongShort'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 LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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