Correlation Between Calamos Strategic and Gabelli Global

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

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

Diversification Opportunities for Calamos Strategic and Gabelli Global

0.39

Correlation Coefficient

Calamos Strategic  Gabelli Global

Weak diversification

The 3 months correlation between Calamos and Gabelli is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Gabelli Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Small and Calamos Strategic 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 Strategic Total are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Small has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Gabelli Global go up and down completely randomly.

Pair Corralation between Calamos Strategic and Gabelli Global

Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 0.98 times more return on investment than Gabelli Global. However, Calamos Strategic Total is 1.02 times less risky than Gabelli Global. It trades about -0.03 of its potential returns per unit of risk. Gabelli Global Small is currently generating about -0.07 per unit of risk. If you would invest  1,783  in Calamos Strategic Total on November 29, 2024 and sell it today you would lose (28.00) from holding Calamos Strategic Total or give up 1.57% of portfolio value over 90 days.

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

Calamos Strategic Total  vs.  Gabelli Global Small

Calamos Strategic Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Strategic Total has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively invariable basic indicators, Calamos Strategic is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Gabelli Global Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gabelli Global Small has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Gabelli Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos Strategic and Gabelli Global

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

The idea behind Calamos Strategic Total and Gabelli Global Small 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.