Correlation Between Gamco Global and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Calamos Hedged 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 Gamco Global and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Telecommunications and Calamos Hedged Equity, you can compare the effects of market volatilities on Gamco Global and Calamos Hedged 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 Gamco Global with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Calamos Hedged.
Diversification Opportunities for Gamco Global and Calamos Hedged
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamco and Calamos is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Telecommunication and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Gamco 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 Gamco Global Telecommunications are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Gamco Global i.e., Gamco Global and Calamos Hedged go up and down completely randomly.
Pair Corralation between Gamco Global and Calamos Hedged
Assuming the 90 days horizon Gamco Global Telecommunications is expected to under-perform the Calamos Hedged. In addition to that, Gamco Global is 1.79 times more volatile than Calamos Hedged Equity. It trades about -0.15 of its total potential returns per unit of risk. Calamos Hedged Equity is currently generating about -0.24 per unit of volatility. If you would invest 1,624 in Calamos Hedged Equity on January 10, 2025 and sell it today you would lose (80.00) from holding Calamos Hedged Equity or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gamco Global Telecommunication vs. Calamos Hedged Equity
Performance |
| Timeline |
| Gamco Global Telecom |
| Calamos Hedged Equity |
Gamco Global and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Calamos Hedged
The main advantage of trading using opposite Gamco Global and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Gamco Global vs. Chase Growth Fund | Gamco Global vs. L Abbett Growth | Gamco Global vs. Ab Global Real | Gamco Global vs. T Rowe Price |
| Calamos Hedged vs. Advent Claymore Convertible | Calamos Hedged vs. Gabelli Convertible And | Calamos Hedged vs. Rationalpier 88 Convertible | Calamos Hedged vs. Virtus Convertible |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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