Correlation Between American Express and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both American Express 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 American Express and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Calamos ETF Trust, you can compare the effects of market volatilities on American Express 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 American Express with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Calamos ETF.
Diversification Opportunities for American Express and Calamos ETF
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding American Express 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 American Express 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 American Express 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 American Express i.e., American Express and Calamos ETF go up and down completely randomly.
Pair Corralation between American Express and Calamos ETF
Considering the 90-day investment horizon American Express is expected to generate 6.35 times more return on investment than Calamos ETF. However, American Express is 6.35 times more volatile than Calamos ETF Trust. It trades about 0.29 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.28 per unit of risk. If you would invest 26,735 in American Express on August 26, 2024 and sell it today you would earn a total of 3,395 from holding American Express or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Calamos ETF Trust
Performance |
| Timeline |
| American Express |
| Calamos ETF Trust |
American Express and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Calamos ETF
The main advantage of trading using opposite American Express and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express 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.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |