Correlation Between Nasdaq 100 and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Calamos Dividend 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 Nasdaq 100 and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Calamos Dividend Growth, you can compare the effects of market volatilities on Nasdaq 100 and Calamos Dividend 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 Nasdaq 100 with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Calamos Dividend.
Diversification Opportunities for Nasdaq 100 and Calamos Dividend
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq and Calamos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth and Nasdaq 100 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 Nasdaq 100 2x Strategy are associated (or correlated) with Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Calamos Dividend go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Calamos Dividend
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to under-perform the Calamos Dividend. In addition to that, Nasdaq 100 is 2.68 times more volatile than Calamos Dividend Growth. It trades about -0.15 of its total potential returns per unit of risk. Calamos Dividend Growth is currently generating about -0.3 per unit of volatility. If you would invest 2,008 in Calamos Dividend Growth on October 17, 2024 and sell it today you would lose (121.00) from holding Calamos Dividend Growth or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Calamos Dividend Growth
Performance |
| Timeline |
| Nasdaq 100 2x |
| Calamos Dividend Growth |
Nasdaq 100 and Calamos Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Calamos Dividend
The main advantage of trading using opposite Nasdaq 100 and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Calamos Dividend 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 Dividend will offset losses from the drop in Calamos Dividend's long position.| Nasdaq 100 vs. Sp 500 2x | Nasdaq 100 vs. Inverse Nasdaq 100 2x | Nasdaq 100 vs. Inverse Sp 500 | Nasdaq 100 vs. Ultra Nasdaq 100 Profunds |
| Calamos Dividend vs. Catalystmillburn Hedge Strategy | Calamos Dividend vs. Franklin Emerging Market | Calamos Dividend vs. Eagle Mlp Strategy | Calamos Dividend vs. Nasdaq 100 2x Strategy |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |