Correlation Between Calamos Global and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Calamos Global 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 Global 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 Global Equity and Goldman Sachs Short, you can compare the effects of market volatilities on Calamos Global 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 Global with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Goldman Sachs.
Diversification Opportunities for Calamos Global and Goldman Sachs
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calamos and Goldman is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Goldman Sachs Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Short 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 Equity 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 Short has no effect on the direction of Calamos Global i.e., Calamos Global and Goldman Sachs go up and down completely randomly.
Pair Corralation between Calamos Global and Goldman Sachs
Assuming the 90 days horizon Calamos Global Equity is expected to generate 10.45 times more return on investment than Goldman Sachs. However, Calamos Global is 10.45 times more volatile than Goldman Sachs Short. It trades about 0.11 of its potential returns per unit of risk. Goldman Sachs Short is currently generating about 0.13 per unit of risk. If you would invest 1,343 in Calamos Global Equity on September 2, 2024 and sell it today you would earn a total of 623.00 from holding Calamos Global Equity or generate 46.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Goldman Sachs Short
Performance |
| Timeline |
| Calamos Global Equity |
| Goldman Sachs Short |
Calamos Global and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Goldman Sachs
The main advantage of trading using opposite Calamos Global and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global 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 Global vs. Calamos International Growth | Calamos Global vs. Calamos Global Growth | Calamos Global vs. Calamos Evolving World | Calamos Global vs. Calamos Market Neutral |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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