Correlation Between Calamos Dynamic and Nationwide Amundi

Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Nationwide Amundi 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 Calamos Dynamic and Nationwide Amundi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calamos Dynamic Convertible and Nationwide Amundi Strategic, you can compare the effects of market volatilities on Calamos Dynamic and Nationwide Amundi 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 Calamos Dynamic with a short position of Nationwide Amundi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Nationwide Amundi.

Diversification Opportunities for Calamos Dynamic and Nationwide Amundi

0.0

Correlation Coefficient

Calamos Dynamic  Nationwide Amundi

Pay attention - limited upside

The 3 months correlation between Calamos and Nationwide is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Nationwide Amundi Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Amundi and Calamos Dynamic 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 Calamos Dynamic Convertible are associated (or correlated) with Nationwide Amundi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Amundi has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Nationwide Amundi go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Nationwide Amundi

Considering the 90-day investment horizon Calamos Dynamic is expected to generate 1.55 times less return on investment than Nationwide Amundi. In addition to that, Calamos Dynamic is 13.82 times more volatile than Nationwide Amundi Strategic. It trades about 0.02 of its total potential returns per unit of risk. Nationwide Amundi Strategic is currently generating about 0.41 per unit of volatility. If you would invest  991.00  in Nationwide Amundi Strategic on October 22, 2024 and sell it today you would earn a total of  11.00  from holding Nationwide Amundi Strategic or generate 1.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  Nationwide Amundi Strategic

Calamos Dynamic Conv

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Dynamic Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Nationwide Amundi

Risk-Adjusted Performance

32 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Nationwide Amundi Strategic are ranked lower than 32 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Nationwide Amundi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Dynamic and Nationwide Amundi

The main advantage of trading using opposite Calamos Dynamic and Nationwide Amundi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Nationwide Amundi 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 Nationwide Amundi will offset losses from the drop in Nationwide Amundi's long position.

The idea behind Calamos Dynamic Convertible and Nationwide Amundi Strategic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.