Correlation Between Bank of America and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Bank of America 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 Bank of America and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Calamos ETF Trust, you can compare the effects of market volatilities on Bank of America 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 Bank of America with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Calamos ETF.
Diversification Opportunities for Bank of America and Calamos ETF
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Calamos is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America 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 Bank of America 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 Bank of America 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 Bank of America i.e., Bank of America and Calamos ETF go up and down completely randomly.
Pair Corralation between Bank of America and Calamos ETF
Considering the 90-day investment horizon Bank of America is expected to generate 13.71 times more return on investment than Calamos ETF. However, Bank of America is 13.71 times more volatile than Calamos ETF Trust. It trades about 0.27 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.09 per unit of risk. If you would invest 4,189 in Bank of America on August 26, 2024 and sell it today you would earn a total of 511.00 from holding Bank of America or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Calamos ETF Trust
Performance |
| Timeline |
| Bank of America |
| Calamos ETF Trust |
Bank of America and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Calamos ETF
The main advantage of trading using opposite Bank of America and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America 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.| Bank of America vs. Toronto Dominion Bank | Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Montreal |
| Calamos ETF vs. Blackrock Muniholdings Ny | Calamos ETF vs. MFS Investment Grade | Calamos ETF vs. Eaton Vance National | Calamos ETF vs. Invesco High Income |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |