Correlation Between Calvert Moderate and Gamco Global

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

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

Diversification Opportunities for Calvert Moderate and Gamco Global

-0.25

Correlation Coefficient

Calvert Moderate  Gamco Global

Very good diversification

The 3 months correlation between Calvert and Gamco is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Gamco Global Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Opportunity and Calvert Moderate 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 Calvert Moderate Allocation are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Opportunity has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Gamco Global go up and down completely randomly.

Pair Corralation between Calvert Moderate and Gamco Global

Assuming the 90 days horizon Calvert Moderate Allocation is expected to generate 0.59 times more return on investment than Gamco Global. However, Calvert Moderate Allocation is 1.71 times less risky than Gamco Global. It trades about 0.23 of its potential returns per unit of risk. Gamco Global Opportunity is currently generating about 0.1 per unit of risk. If you would invest  2,103  in Calvert Moderate Allocation on September 14, 2024 and sell it today you would earn a total of  33.00  from holding Calvert Moderate Allocation or generate 1.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Calvert Moderate Allocation  vs.  Gamco Global Opportunity

Calvert Moderate All

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Moderate Allocation are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gamco Global Opportunity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gamco Global Opportunity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calvert Moderate and Gamco Global

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

The idea behind Calvert Moderate Allocation and Gamco Global Opportunity 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.