Correlation Between Calamos Global and NXG NextGen
Can any of the company-specific risk be diversified away by investing in both Calamos Global and NXG NextGen 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 Global and NXG NextGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Total and NXG NextGen Infrastructure, you can compare the effects of market volatilities on Calamos Global and NXG NextGen 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 Global with a short position of NXG NextGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and NXG NextGen.
Diversification Opportunities for Calamos Global and NXG NextGen
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and NXG is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Total and NXG NextGen Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXG NextGen Infrastr and Calamos Global 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 Global Total are associated (or correlated) with NXG NextGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXG NextGen Infrastr has no effect on the direction of Calamos Global i.e., Calamos Global and NXG NextGen go up and down completely randomly.
Pair Corralation between Calamos Global and NXG NextGen
Considering the 90-day investment horizon Calamos Global is expected to generate 1.8 times less return on investment than NXG NextGen. But when comparing it to its historical volatility, Calamos Global Total is 1.6 times less risky than NXG NextGen. It trades about 0.04 of its potential returns per unit of risk. NXG NextGen Infrastructure is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,037 in NXG NextGen Infrastructure on March 22, 2024 and sell it today you would earn a total of 1,041 from holding NXG NextGen Infrastructure or generate 34.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos Global Total vs. NXG NextGen Infrastructure
Performance |
Timeline |
Calamos Global Total |
NXG NextGen Infrastr |
Calamos Global and NXG NextGen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos Global and NXG NextGen
The main advantage of trading using opposite Calamos Global and NXG NextGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, NXG NextGen 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 NXG NextGen will offset losses from the drop in NXG NextGen's long position.Calamos Global vs. Pimco Dynamic Income | Calamos Global vs. Neuberger Berman Next | Calamos Global vs. Blackrock Debt Strategies | Calamos Global vs. Eaton Vance Tax |
NXG NextGen vs. MFS Government Markets | NXG NextGen vs. MFS Multimarket Income | NXG NextGen vs. MFS Charter Income | NXG NextGen vs. Putnam Premier Income |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |