Correlation Between Gateway Fund and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Gateway Fund 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 Gateway Fund and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Fund Class and Calamos Hedged Equity, you can compare the effects of market volatilities on Gateway Fund 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 Gateway Fund with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Fund and Calamos Hedged.
Diversification Opportunities for Gateway Fund and Calamos Hedged
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Gateway and Calamos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Fund Class 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 Gateway Fund 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 Gateway Fund Class 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 Gateway Fund i.e., Gateway Fund and Calamos Hedged go up and down completely randomly.
Pair Corralation between Gateway Fund and Calamos Hedged
Assuming the 90 days horizon Gateway Fund Class is expected to generate 1.09 times more return on investment than Calamos Hedged. However, Gateway Fund is 1.09 times more volatile than Calamos Hedged Equity. It trades about 0.37 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.32 per unit of risk. If you would invest 4,540 in Gateway Fund Class on September 1, 2024 and sell it today you would earn a total of 173.00 from holding Gateway Fund Class or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Fund Class vs. Calamos Hedged Equity
Performance |
| Timeline |
| Gateway Fund Class |
| Calamos Hedged Equity |
Gateway Fund and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Fund and Calamos Hedged
The main advantage of trading using opposite Gateway Fund and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Fund 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.| Gateway Fund vs. Dunham Large Cap | Gateway Fund vs. T Rowe Price | Gateway Fund vs. M Large Cap | Gateway Fund vs. Tax Managed Large Cap |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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