Correlation Between GAMCO Natural and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both GAMCO Natural 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 GAMCO Natural and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Natural Resources and Calamos Dynamic Convertible, you can compare the effects of market volatilities on GAMCO Natural 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 GAMCO Natural with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Natural and Calamos Dynamic.
Diversification Opportunities for GAMCO Natural and Calamos Dynamic
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAMCO and Calamos is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Natural Resources 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 GAMCO Natural 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 Natural Resources 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 GAMCO Natural i.e., GAMCO Natural and Calamos Dynamic go up and down completely randomly.
Pair Corralation between GAMCO Natural and Calamos Dynamic
Considering the 90-day investment horizon GAMCO Natural is expected to generate 1.18 times less return on investment than Calamos Dynamic. In addition to that, GAMCO Natural is 1.02 times more volatile than Calamos Dynamic Convertible. It trades about 0.06 of its total potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about 0.07 per unit of volatility. If you would invest 1,750 in Calamos Dynamic Convertible on November 27, 2024 and sell it today you would earn a total of 620.00 from holding Calamos Dynamic Convertible or generate 35.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Natural Resources vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| GAMCO Natural Resources |
| Calamos Dynamic Conv |
GAMCO Natural and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Natural and Calamos Dynamic
The main advantage of trading using opposite GAMCO Natural and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Natural 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.| GAMCO Natural vs. MFS Investment Grade | GAMCO Natural vs. Eaton Vance National | GAMCO Natural vs. Federated Premier Municipal | GAMCO Natural vs. Gabelli Healthcare WellnessRx |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |