Correlation Between Gabelli Equity and Calamos Growth
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity and Calamos Growth 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 Gabelli Equity and Calamos Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Equity Trust and Calamos Growth Income, you can compare the effects of market volatilities on Gabelli Equity and Calamos Growth 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 Gabelli Equity with a short position of Calamos Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Calamos Growth.
Diversification Opportunities for Gabelli Equity and Calamos Growth
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Calamos is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Equity Trust and Calamos Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Growth Income and Gabelli Equity 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 Gabelli Equity Trust are associated (or correlated) with Calamos Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Growth Income has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Calamos Growth go up and down completely randomly.
Pair Corralation between Gabelli Equity and Calamos Growth
Considering the 90-day investment horizon Gabelli Equity Trust is expected to under-perform the Calamos Growth. In addition to that, Gabelli Equity is 1.05 times more volatile than Calamos Growth Income. It trades about -0.14 of its total potential returns per unit of risk. Calamos Growth Income is currently generating about -0.08 per unit of volatility. If you would invest 4,963 in Calamos Growth Income on November 27, 2024 and sell it today you would lose (55.00) from holding Calamos Growth Income or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Equity Trust vs. Calamos Growth Income
Performance |
| Timeline |
| Gabelli Equity Trust |
| Calamos Growth Income |
Gabelli Equity and Calamos Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Calamos Growth
The main advantage of trading using opposite Gabelli Equity and Calamos Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity position performs unexpectedly, Calamos Growth 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 Calamos Growth will offset losses from the drop in Calamos Growth's long position.| Gabelli Equity vs. Gabelli Utility Closed | Gabelli Equity vs. Gabelli MultiMedia Mutual | Gabelli Equity vs. Gabelli Healthcare WellnessRx | Gabelli Equity vs. Liberty All Star |
| Calamos Growth vs. Calamos Growth Fund | Calamos Growth vs. Davis New York | Calamos Growth vs. First Eagle Global | Calamos Growth vs. Calamos Vertible Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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