Correlation Between Goldman Sachs and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Calamos Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs High and Calamos Global Equity, you can compare the effects of market volatilities on Goldman Sachs and Calamos Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Calamos Global.
Diversification Opportunities for Goldman Sachs and Calamos Global
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goldman and Calamos is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs High and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity 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 High are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Calamos Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Calamos Global
Assuming the 90 days horizon Goldman Sachs is expected to generate 1.09 times less return on investment than Calamos Global. But when comparing it to its historical volatility, Goldman Sachs High is 5.57 times less risky than Calamos Global. It trades about 0.6 of its potential returns per unit of risk. Calamos Global Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,947 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Calamos Global Equity or generate 1.59% 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 High vs. Calamos Global Equity
Performance |
| Timeline |
| Goldman Sachs High |
| Calamos Global Equity |
Goldman Sachs and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Calamos Global
The main advantage of trading using opposite Goldman Sachs and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.| Goldman Sachs vs. Fidelity Advisor Financial | Goldman Sachs vs. Blackrock Financial Institutions | Goldman Sachs vs. Mesirow Financial Small | Goldman Sachs vs. Davis Financial Fund |
| Calamos Global vs. American Funds New | Calamos Global vs. American Funds New | Calamos Global vs. New Perspective Fund | Calamos Global vs. New Perspective 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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