Correlation Between Calamos Dynamic and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Growth, you can compare the effects of market volatilities on Calamos Dynamic and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Goldman Sachs.
Diversification Opportunities for Calamos Dynamic and Goldman Sachs
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Calamos and Goldman is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Goldman Sachs Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Growth 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Growth has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Goldman Sachs go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Goldman Sachs
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Goldman Sachs. But the fund apears to be less risky and, when comparing its historical volatility, Calamos Dynamic Convertible is 1.05 times less risky than Goldman Sachs. The fund trades about -0.15 of its potential returns per unit of risk. The Goldman Sachs Growth is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 2,074 in Goldman Sachs Growth on September 13, 2024 and sell it today you would lose (52.00) from holding Goldman Sachs Growth or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Goldman Sachs Growth
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Goldman Sachs Growth |
Calamos Dynamic and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Goldman Sachs
The main advantage of trading using opposite Calamos Dynamic and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
| Goldman Sachs vs. Prudential Short Duration | Goldman Sachs vs. Easterly Snow Longshort | Goldman Sachs vs. Cmg Ultra Short | Goldman Sachs vs. Angel Oak Ultrashort |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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