Correlation Between Calamos LongShort and Gabelli Convertible
Can any of the company-specific risk be diversified away by investing in both Calamos LongShort and Gabelli Convertible 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 LongShort and Gabelli Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos LongShort Equity and Gabelli Convertible And, you can compare the effects of market volatilities on Calamos LongShort and Gabelli Convertible 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 LongShort with a short position of Gabelli Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and Gabelli Convertible.
Diversification Opportunities for Calamos LongShort and Gabelli Convertible
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calamos and Gabelli is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and Gabelli Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Convertible And and Calamos LongShort 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 LongShort Equity are associated (or correlated) with Gabelli Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Convertible And has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and Gabelli Convertible go up and down completely randomly.
Pair Corralation between Calamos LongShort and Gabelli Convertible
Considering the 90-day investment horizon Calamos LongShort Equity is expected to generate 0.73 times more return on investment than Gabelli Convertible. However, Calamos LongShort Equity is 1.38 times less risky than Gabelli Convertible. It trades about 0.07 of its potential returns per unit of risk. Gabelli Convertible And is currently generating about 0.03 per unit of risk. If you would invest 1,300 in Calamos LongShort Equity on September 2, 2024 and sell it today you would earn a total of 270.00 from holding Calamos LongShort Equity or generate 20.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos LongShort Equity vs. Gabelli Convertible And
Performance |
| Timeline |
| Calamos LongShort Equity |
| Gabelli Convertible And |
Calamos LongShort and Gabelli Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos LongShort and Gabelli Convertible
The main advantage of trading using opposite Calamos LongShort and Gabelli Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort position performs unexpectedly, Gabelli Convertible 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 Gabelli Convertible will offset losses from the drop in Gabelli Convertible's long position.| Calamos LongShort vs. Calamos Convertible Opportunities | Calamos LongShort vs. Calamos Convertible And | Calamos LongShort vs. Calamos Strategic Total | Calamos LongShort vs. Calamos Dynamic Convertible |
| Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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