Correlation Between Gamco Natural and Calvert Fund

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

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

Diversification Opportunities for Gamco Natural and Calvert Fund

0.68

Correlation Coefficient

Gamco Natural  Calvert Fund

Poor diversification

The 3 months correlation between Gamco and Calvert is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and Calvert Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Fund and Gamco Natural 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 Gamco Natural Resources are associated (or correlated) with Calvert Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Fund has no effect on the direction of Gamco Natural i.e., Gamco Natural and Calvert Fund go up and down completely randomly.

Pair Corralation between Gamco Natural and Calvert Fund

Assuming the 90 days horizon Gamco Natural is expected to generate 1.27 times less return on investment than Calvert Fund. But when comparing it to its historical volatility, Gamco Natural Resources is 1.17 times less risky than Calvert Fund. It trades about 0.08 of its potential returns per unit of risk. Calvert Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,103  in Calvert Fund on May 4, 2025 and sell it today you would earn a total of  48.00  from holding Calvert Fund or generate 4.35% return on investment over 90 days.

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

Gamco Natural Resources  vs.  Calvert Fund

Gamco Natural Resources

Risk-Adjusted Performance

Modest

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

Calvert Fund

Risk-Adjusted Performance

Modest

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

Pair Trading with Gamco Natural and Calvert Fund

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

The idea behind Gamco Natural Resources and Calvert Fund 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..