Correlation Between Calamos Growth and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Calamos Growth and Gateway Fund 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 Growth and Gateway Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Growth Income and Gateway Fund Class, you can compare the effects of market volatilities on Calamos Growth and Gateway Fund 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 Growth with a short position of Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Growth and Gateway Fund.
Diversification Opportunities for Calamos Growth and Gateway Fund
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calamos and Gateway is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Growth Income and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class and Calamos Growth 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 Growth Income are associated (or correlated) with Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Calamos Growth i.e., Calamos Growth and Gateway Fund go up and down completely randomly.
Pair Corralation between Calamos Growth and Gateway Fund
Assuming the 90 days horizon Calamos Growth Income is expected to generate 1.66 times more return on investment than Gateway Fund. However, Calamos Growth is 1.66 times more volatile than Gateway Fund Class. It trades about 0.09 of its potential returns per unit of risk. Gateway Fund Class is currently generating about 0.13 per unit of risk. If you would invest 3,811 in Calamos Growth Income on August 28, 2024 and sell it today you would earn a total of 1,305 from holding Calamos Growth Income or generate 34.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Growth Income vs. Gateway Fund Class
Performance |
| Timeline |
| Calamos Growth Income |
| Gateway Fund Class |
Calamos Growth and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Growth and Gateway Fund
The main advantage of trading using opposite Calamos Growth and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Growth position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.The idea behind Calamos Growth Income and Gateway Fund Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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