Correlation Between Goldman Sachs and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Calamos Convertible 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 Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Short and Calamos Vertible Fund, you can compare the effects of market volatilities on Goldman Sachs and Calamos Convertible 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 Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Calamos Convertible.
Diversification Opportunities for Goldman Sachs and Calamos Convertible
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GOLDMAN and Calamos is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible 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 Short are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Calamos Convertible go up and down completely randomly.
Pair Corralation between Goldman Sachs and Calamos Convertible
Assuming the 90 days horizon Goldman Sachs is expected to generate 19.45 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, Goldman Sachs Short is 7.34 times less risky than Calamos Convertible. It trades about 0.2 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 1,830 in Calamos Vertible Fund on September 3, 2024 and sell it today you would earn a total of 113.00 from holding Calamos Vertible Fund or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Short vs. Calamos Vertible Fund
Performance |
| Timeline |
| Goldman Sachs Short |
| Calamos Convertible |
Goldman Sachs and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Calamos Convertible
The main advantage of trading using opposite Goldman Sachs and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.| Goldman Sachs vs. SPACE | Goldman Sachs vs. Bayview Acquisition Corp | Goldman Sachs vs. Ampleforth | Goldman Sachs vs. ionet |
| Calamos Convertible vs. Sprott Gold Equity | Calamos Convertible vs. Oppenheimer Gold Special | Calamos Convertible vs. Goldman Sachs Short | Calamos Convertible vs. Gold And Precious |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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