Correlation Between Gabelli Convertible and Calvert Bond

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

By analyzing existing cross correlation between Gabelli Convertible And and Calvert Bond Portfolio, you can compare the effects of market volatilities on Gabelli Convertible and Calvert Bond 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 Gabelli Convertible with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Calvert Bond.

Diversification Opportunities for Gabelli Convertible and Calvert Bond

0.58

Correlation Coefficient

Gabelli Convertible  Calvert Bond

Very weak diversification

The 3 months correlation between Gabelli and Calvert is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and Gabelli Convertible 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 Gabelli Convertible And are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Calvert Bond go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Calvert Bond

Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 2.67 times more return on investment than Calvert Bond. However, Gabelli Convertible is 2.67 times more volatile than Calvert Bond Portfolio. It trades about 0.3 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.06 per unit of risk. If you would invest  342.00  in Gabelli Convertible And on May 1, 2025 and sell it today you would earn a total of  49.00  from holding Gabelli Convertible And or generate 14.33% return on investment over 90 days.

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

Gabelli Convertible And  vs.  Calvert Bond Portfolio

Gabelli Convertible And

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Convertible And are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly uncertain fundamental indicators, Gabelli Convertible showed solid returns over the last few months and may actually be approaching a breakup point.

Calvert Bond Portfolio

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Bond Portfolio are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Calvert Bond is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gabelli Convertible and Calvert Bond

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

The idea behind Gabelli Convertible And and Calvert Bond Portfolio 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.