Correlation Between NXG NextGen and Calamos Global
Can any of the company-specific risk be diversified away by investing in both NXG NextGen 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 NXG NextGen and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NXG NextGen Infrastructure and Calamos Global Dynamic, you can compare the effects of market volatilities on NXG NextGen 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 NXG NextGen with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NXG NextGen and Calamos Global.
Diversification Opportunities for NXG NextGen and Calamos Global
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NXG and Calamos is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NXG NextGen Infrastructure 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 NXG NextGen 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 NXG NextGen Infrastructure 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 NXG NextGen i.e., NXG NextGen and Calamos Global go up and down completely randomly.
Pair Corralation between NXG NextGen and Calamos Global
Considering the 90-day investment horizon NXG NextGen Infrastructure is expected to generate 1.35 times more return on investment than Calamos Global. However, NXG NextGen is 1.35 times more volatile than Calamos Global Dynamic. It trades about 0.78 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 4,270 in NXG NextGen Infrastructure on August 31, 2024 and sell it today you would earn a total of 870.00 from holding NXG NextGen Infrastructure or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NXG NextGen Infrastructure vs. Calamos Global Dynamic
Performance |
| Timeline |
| NXG NextGen Infrastr |
| Calamos Global Dynamic |
NXG NextGen and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NXG NextGen and Calamos Global
The main advantage of trading using opposite NXG NextGen and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NXG NextGen 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.| NXG NextGen vs. MFS Investment Grade | NXG NextGen vs. Invesco High Income | NXG NextGen vs. Eaton Vance National | NXG NextGen vs. Nuveen California Select |
| Calamos Global vs. MFS Investment Grade | Calamos Global vs. Eaton Vance Municipal | Calamos Global vs. DTF Tax Free | Calamos Global vs. HUMANA INC |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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