Correlation Between Calamos Market and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Calamos Market 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 Market 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 Market Neutral and Goldman Sachs Equity, you can compare the effects of market volatilities on Calamos Market 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 Market with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and Goldman Sachs.
Diversification Opportunities for Calamos Market and Goldman Sachs
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Goldman is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and Goldman Sachs Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Equity and Calamos Market 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 Market Neutral 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 Equity has no effect on the direction of Calamos Market i.e., Calamos Market and Goldman Sachs go up and down completely randomly.
Pair Corralation between Calamos Market and Goldman Sachs
Assuming the 90 days horizon Calamos Market is expected to generate 3.64 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Calamos Market Neutral is 2.96 times less risky than Goldman Sachs. It trades about 0.08 of its potential returns per unit of risk. Goldman Sachs Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,482 in Goldman Sachs Equity on September 12, 2024 and sell it today you would earn a total of 345.00 from holding Goldman Sachs Equity or generate 23.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Market Neutral vs. Goldman Sachs Equity
Performance |
| Timeline |
| Calamos Market Neutral |
| Goldman Sachs Equity |
Calamos Market and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and Goldman Sachs
The main advantage of trading using opposite Calamos Market and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market 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 Market vs. Prudential Health Sciences | Calamos Market vs. Health Biotchnology Portfolio | Calamos Market vs. Blackrock Health Sciences | Calamos Market vs. Tekla Healthcare Opportunities |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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