Correlation Between Alcoa Corp and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Alcoa Corp and Calamos ETF 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 Alcoa Corp and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcoa Corp and Calamos ETF Trust, you can compare the effects of market volatilities on Alcoa Corp and Calamos ETF 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 Alcoa Corp with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and Calamos ETF.
Diversification Opportunities for Alcoa Corp and Calamos ETF
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alcoa and Calamos is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and Calamos ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos ETF Trust and Alcoa Corp 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 Alcoa Corp are associated (or correlated) with Calamos ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos ETF Trust has no effect on the direction of Alcoa Corp i.e., Alcoa Corp and Calamos ETF go up and down completely randomly.
Pair Corralation between Alcoa Corp and Calamos ETF
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 10.89 times more return on investment than Calamos ETF. However, Alcoa Corp is 10.89 times more volatile than Calamos ETF Trust. It trades about 0.02 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.19 per unit of risk. If you would invest 4,403 in Alcoa Corp on August 30, 2024 and sell it today you would earn a total of 185.00 from holding Alcoa Corp or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 21.41% |
| Values | Daily Returns |
Alcoa Corp vs. Calamos ETF Trust
Performance |
| Timeline |
| Alcoa Corp |
| Calamos ETF Trust |
Alcoa Corp and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and Calamos ETF
The main advantage of trading using opposite Alcoa Corp and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp position performs unexpectedly, Calamos ETF 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 ETF will offset losses from the drop in Calamos ETF's long position.| Alcoa Corp vs. Direxion Daily FTSE | Alcoa Corp vs. Dodge Global Stock | Alcoa Corp vs. Collegium Pharmaceutical | Alcoa Corp vs. Dreyfus Natural Resources |
| Calamos ETF vs. Dimensional ETF Trust | Calamos ETF vs. Vanguard Small Cap Index | Calamos ETF vs. First Trust Multi Manager | Calamos ETF vs. Vanguard SP Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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