Correlation Between Calamos Phineus and Goldman Sachs

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

By analyzing existing cross correlation between Calamos Phineus Longshort and Goldman Sachs Real, you can compare the effects of market volatilities on Calamos Phineus and Goldman Sachs 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 Phineus with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Phineus and Goldman Sachs.

Diversification Opportunities for Calamos Phineus and Goldman Sachs

0.28

Correlation Coefficient

Calamos Phineus  Goldman Sachs

Modest diversification

The 3 months correlation between Calamos and Goldman is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Phineus Longshort and Goldman Sachs Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Real and Calamos Phineus 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 Phineus Longshort are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Real has no effect on the direction of Calamos Phineus i.e., Calamos Phineus and Goldman Sachs go up and down completely randomly.

Pair Corralation between Calamos Phineus and Goldman Sachs

Assuming the 90 days horizon Calamos Phineus is expected to generate 1.14 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Calamos Phineus Longshort is 2.2 times less risky than Goldman Sachs. It trades about 0.05 of its potential returns per unit of risk. Goldman Sachs Real is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,191  in Goldman Sachs Real on December 29, 2024 and sell it today you would earn a total of  15.00  from holding Goldman Sachs Real or generate 1.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Calamos Phineus Longshort  vs.  Goldman Sachs Real

Calamos Phineus Longshort

Risk-Adjusted Performance

Insignificant

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

Goldman Sachs Real

Risk-Adjusted Performance

Weak

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

Pair Trading with Calamos Phineus and Goldman Sachs

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

The idea behind Calamos Phineus Longshort and Goldman Sachs Real 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.