Correlation Between FT Cboe and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both FT Cboe 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 FT Cboe and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Cboe Vest and Calamos ETF Trust, you can compare the effects of market volatilities on FT Cboe 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 FT Cboe with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Cboe and Calamos ETF.
Diversification Opportunities for FT Cboe and Calamos ETF
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BUFD and Calamos is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding FT Cboe Vest 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 FT Cboe 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 FT Cboe Vest 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 FT Cboe i.e., FT Cboe and Calamos ETF go up and down completely randomly.
Pair Corralation between FT Cboe and Calamos ETF
Given the investment horizon of 90 days FT Cboe is expected to generate 2.78 times less return on investment than Calamos ETF. In addition to that, FT Cboe is 1.91 times more volatile than Calamos ETF Trust. It trades about 0.09 of its total potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.47 per unit of volatility. If you would invest 2,458 in Calamos ETF Trust on September 14, 2024 and sell it today you would earn a total of 14.00 from holding Calamos ETF Trust or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
FT Cboe Vest vs. Calamos ETF Trust
Performance |
| Timeline |
| FT Cboe Vest |
| Calamos ETF Trust |
FT Cboe and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Cboe and Calamos ETF
The main advantage of trading using opposite FT Cboe and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Cboe 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.| FT Cboe vs. First Trust Cboe | FT Cboe vs. FT Cboe Vest | FT Cboe vs. FT Cboe Vest | FT Cboe vs. First Trust Exchange Traded |
| Calamos ETF vs. FT Vest Equity | Calamos ETF vs. Northern Lights | Calamos ETF vs. Dimensional International High | Calamos ETF vs. JPMorgan Fundamental Data |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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