Correlation Between Gmo High and Calamos Dividend
Can any of the company-specific risk be diversified away by investing in both Gmo High 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 Gmo High and Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo High Yield and Calamos Dividend Growth, you can compare the effects of market volatilities on Gmo High 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 Gmo High with a short position of Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo High and Calamos Dividend.
Diversification Opportunities for Gmo High and Calamos Dividend
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gmo and Calamos is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gmo High Yield 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 Gmo High 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 Gmo High Yield 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 Gmo High i.e., Gmo High and Calamos Dividend go up and down completely randomly.
Pair Corralation between Gmo High and Calamos Dividend
Assuming the 90 days horizon Gmo High Yield is expected to generate 0.18 times more return on investment than Calamos Dividend. However, Gmo High Yield is 5.47 times less risky than Calamos Dividend. It trades about 0.14 of its potential returns per unit of risk. Calamos Dividend Growth is currently generating about -0.06 per unit of risk. If you would invest 1,663 in Gmo High Yield on December 28, 2024 and sell it today you would earn a total of 28.00 from holding Gmo High Yield or generate 1.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gmo High Yield vs. Calamos Dividend Growth
Performance |
Timeline |
Gmo High Yield |
Calamos Dividend Growth |
Gmo High and Calamos Dividend Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gmo High and Calamos Dividend
The main advantage of trading using opposite Gmo High and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo High 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.Gmo High vs. Black Oak Emerging | Gmo High vs. Nationwide Bailard Technology | Gmo High vs. Ivy Science And | Gmo High vs. Putnam Global Technology |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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