Correlation Between GAMCO Natural and Calamos Global
Can any of the company-specific risk be diversified away by investing in both GAMCO Natural 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 GAMCO Natural and Calamos Global 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 Global Dynamic, you can compare the effects of market volatilities on GAMCO Natural 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 GAMCO Natural with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Natural and Calamos Global.
Diversification Opportunities for GAMCO Natural and Calamos Global
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GAMCO and Calamos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Natural Resources and Calamos Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Dynamic 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 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 Dynamic has no effect on the direction of GAMCO Natural i.e., GAMCO Natural and Calamos Global go up and down completely randomly.
Pair Corralation between GAMCO Natural and Calamos Global
Considering the 90-day investment horizon GAMCO Natural Resources is expected to under-perform the Calamos Global. In addition to that, GAMCO Natural is 1.23 times more volatile than Calamos Global Dynamic. It trades about -0.03 of its total potential returns per unit of risk. Calamos Global Dynamic is currently generating about 0.04 per unit of volatility. If you would invest 696.00 in Calamos Global Dynamic on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Calamos Global Dynamic or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Natural Resources vs. Calamos Global Dynamic
Performance |
| Timeline |
| GAMCO Natural Resources |
| Calamos Global Dynamic |
GAMCO Natural and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Natural and Calamos Global
The main advantage of trading using opposite GAMCO Natural and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Natural 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.| GAMCO Natural vs. Blackrock Floating Rate | GAMCO Natural vs. Eaton Vance Senior | GAMCO Natural vs. Eaton Vance Senior | GAMCO Natural vs. Blackrock Debt Strategies |
| Calamos Global vs. MFS Investment Grade | Calamos Global vs. Eaton Vance Municipal | Calamos Global vs. DTF Tax Free | Calamos Global vs. HUMANA INC |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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