Correlation Between Maryland Tax-free and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Maryland Tax-free and Calamos Opportunistic 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 Maryland Tax-free and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maryland Tax Free Bond and Calamos Opportunistic Value, you can compare the effects of market volatilities on Maryland Tax-free and Calamos Opportunistic 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 Maryland Tax-free with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maryland Tax-free and Calamos Opportunistic.
Diversification Opportunities for Maryland Tax-free and Calamos Opportunistic
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maryland and Calamos is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Maryland Tax Free Bond and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Maryland Tax-free 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 Maryland Tax Free Bond are associated (or correlated) with Calamos Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Maryland Tax-free i.e., Maryland Tax-free and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Maryland Tax-free and Calamos Opportunistic
Assuming the 90 days horizon Maryland Tax-free is expected to generate 2.96 times less return on investment than Calamos Opportunistic. But when comparing it to its historical volatility, Maryland Tax Free Bond is 3.89 times less risky than Calamos Opportunistic. It trades about 0.14 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,185 in Calamos Opportunistic Value on September 3, 2024 and sell it today you would earn a total of 256.00 from holding Calamos Opportunistic Value or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maryland Tax Free Bond vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Maryland Tax Free |
| Calamos Opportunistic |
Maryland Tax-free and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maryland Tax-free and Calamos Opportunistic
The main advantage of trading using opposite Maryland Tax-free and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maryland Tax-free position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.| Maryland Tax-free vs. Goldman Sachs Managed | Maryland Tax-free vs. Aqr Managed Futures | Maryland Tax-free vs. Ab Bond Inflation | Maryland Tax-free vs. T Rowe Price |
| Calamos Opportunistic vs. Calamos Dynamic Convertible | Calamos Opportunistic vs. Touchstone Premium Yield | Calamos Opportunistic vs. Ab Bond Inflation | Calamos Opportunistic vs. Maryland Tax Free Bond |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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