Correlation Between Gamco Global and Calamos Dividend

Can any of the company-specific risk be diversified away by investing in both Gamco Global and Calamos Dividend 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 Global and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gamco Global Growth and Calamos Dividend Growth, you can compare the effects of market volatilities on Gamco Global and Calamos Dividend 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 Global with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Calamos Dividend.

Diversification Opportunities for Gamco Global and Calamos Dividend

0.88

Correlation Coefficient

Gamco Global  Calamos Dividend

Very poor diversification

The 3 months correlation between Gamco and Calamos is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Growth and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth and Gamco Global 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 Global Growth are associated (or correlated) with Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Gamco Global i.e., Gamco Global and Calamos Dividend go up and down completely randomly.

Pair Corralation between Gamco Global and Calamos Dividend

Assuming the 90 days horizon Gamco Global is expected to generate 1.53 times less return on investment than Calamos Dividend. In addition to that, Gamco Global is 1.26 times more volatile than Calamos Dividend Growth. It trades about 0.02 of its total potential returns per unit of risk. Calamos Dividend Growth is currently generating about 0.05 per unit of volatility. If you would invest  1,888  in Calamos Dividend Growth on September 29, 2024 and sell it today you would earn a total of  41.00  from holding Calamos Dividend Growth or generate 2.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Gamco Global Growth  vs.  Calamos Dividend Growth

Gamco Global Growth

Risk-Adjusted Performance

1 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gamco Global Growth are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Gamco Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Dividend Growth

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Dividend Growth are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Dividend is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gamco Global and Calamos Dividend

The main advantage of trading using opposite Gamco Global and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Calamos Dividend 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 Dividend will offset losses from the drop in Calamos Dividend's long position.

The idea behind Gamco Global Growth and Calamos Dividend Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.