Correlation Between GAMCO Natural and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both GAMCO Natural and Calamos Strategic 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 Strategic 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 Strategic Total, you can compare the effects of market volatilities on GAMCO Natural and Calamos Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Natural and Calamos Strategic.
Diversification Opportunities for GAMCO Natural and Calamos Strategic
-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 Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of GAMCO Natural i.e., GAMCO Natural and Calamos Strategic go up and down completely randomly.
Pair Corralation between GAMCO Natural and Calamos Strategic
Considering the 90-day investment horizon GAMCO Natural Resources is expected to generate 1.01 times more return on investment than Calamos Strategic. However, GAMCO Natural is 1.01 times more volatile than Calamos Strategic Total. It trades about -0.02 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about -0.27 per unit of risk. If you would invest 576.00 in GAMCO Natural Resources on January 9, 2025 and sell it today you would lose (9.00) from holding GAMCO Natural Resources or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GAMCO Natural Resources vs. Calamos Strategic Total
Performance |
| Timeline |
| GAMCO Natural Resources |
| Calamos Strategic Total |
GAMCO Natural and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Natural and Calamos Strategic
The main advantage of trading using opposite GAMCO Natural and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Natural position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic'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 Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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