Correlation Between Calamos Market and The Gabelli
Can any of the company-specific risk be diversified away by investing in both Calamos Market and The Gabelli 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 Calamos Market and The Gabelli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Market Neutral and The Gabelli Abc, you can compare the effects of market volatilities on Calamos Market and The Gabelli 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 Calamos Market with a short position of The Gabelli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Market and The Gabelli.
Diversification Opportunities for Calamos Market and The Gabelli
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and The is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Market Neutral and The Gabelli Abc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Abc and Calamos Market 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 Calamos Market Neutral are associated (or correlated) with The Gabelli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Abc has no effect on the direction of Calamos Market i.e., Calamos Market and The Gabelli go up and down completely randomly.
Pair Corralation between Calamos Market and The Gabelli
Assuming the 90 days horizon Calamos Market Neutral is expected to under-perform the The Gabelli. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calamos Market Neutral is 2.88 times less risky than The Gabelli. The mutual fund trades about -0.12 of its potential returns per unit of risk. The The Gabelli Abc is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,043 in The Gabelli Abc on January 20, 2024 and sell it today you would lose (2.00) from holding The Gabelli Abc or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Market Neutral vs. The Gabelli Abc
Performance |
| Timeline |
| Calamos Market Neutral |
| Gabelli Abc |
Calamos Market and The Gabelli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Market and The Gabelli
The main advantage of trading using opposite Calamos Market and The Gabelli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Market position performs unexpectedly, The Gabelli 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 The Gabelli will offset losses from the drop in The Gabelli's long position.| Calamos Market vs. The Arbitrage Fund | Calamos Market vs. The Merger Fund | Calamos Market vs. Gateway Fund Class | Calamos Market vs. Diamond Hill Long Short |
| The Gabelli vs. Gabelli Global Financial | The Gabelli vs. The Gabelli Equity | The Gabelli vs. Gamco International Growth | The Gabelli vs. Gabelli Utilities |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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