Correlation Between The Gold and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both The Gold 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 The Gold and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gold Bullion and Calamos Vertible Fund, you can compare the effects of market volatilities on The Gold 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 The Gold with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gold and Calamos Convertible.
Diversification Opportunities for The Gold and Calamos Convertible
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between The and Calamos is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Gold Bullion and Calamos Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and The Gold 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 The Gold Bullion 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 The Gold i.e., The Gold and Calamos Convertible go up and down completely randomly.
Pair Corralation between The Gold and Calamos Convertible
Assuming the 90 days horizon The Gold Bullion is expected to generate 1.62 times more return on investment than Calamos Convertible. However, The Gold is 1.62 times more volatile than Calamos Vertible Fund. It trades about 0.08 of its potential returns per unit of risk. Calamos Vertible Fund is currently generating about 0.06 per unit of risk. If you would invest 1,599 in The Gold Bullion on December 4, 2024 and sell it today you would earn a total of 577.00 from holding The Gold Bullion or generate 36.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gold Bullion vs. Calamos Vertible Fund
Performance |
| Timeline |
| Gold Bullion |
| Calamos Convertible |
The Gold and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gold and Calamos Convertible
The main advantage of trading using opposite The Gold and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gold 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.| The Gold vs. Virtus Seix Government | ||
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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