Correlation Between Goldman Sachs and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Calamos Dynamic 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 Goldman Sachs and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Mid and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Goldman Sachs and Calamos Dynamic 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 Goldman Sachs with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Calamos Dynamic.
Diversification Opportunities for Goldman Sachs and Calamos Dynamic
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Goldman and Calamos is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Mid and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Goldman Sachs 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 Goldman Sachs Mid are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Goldman Sachs and Calamos Dynamic
Assuming the 90 days horizon Goldman Sachs Mid is expected to generate 0.85 times more return on investment than Calamos Dynamic. However, Goldman Sachs Mid is 1.17 times less risky than Calamos Dynamic. It trades about 0.13 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.08 per unit of risk. If you would invest 3,655 in Goldman Sachs Mid on September 3, 2024 and sell it today you would earn a total of 560.00 from holding Goldman Sachs Mid or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Mid vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Goldman Sachs Mid |
| Calamos Dynamic Conv |
Goldman Sachs and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Calamos Dynamic
The main advantage of trading using opposite Goldman Sachs and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Calamos Dynamic 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 Dynamic will offset losses from the drop in Calamos Dynamic's long position.| Goldman Sachs vs. Calamos Dynamic Convertible | Goldman Sachs vs. Versatile Bond Portfolio | Goldman Sachs vs. Bbh Intermediate Municipal | Goldman Sachs vs. Multisector Bond Sma |
| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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