Correlation Between Caterpillar and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Caterpillar 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 Caterpillar and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Calamos ETF Trust, you can compare the effects of market volatilities on Caterpillar 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 Caterpillar with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Calamos ETF.
Diversification Opportunities for Caterpillar and Calamos ETF
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caterpillar and Calamos is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar 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 Caterpillar 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 Caterpillar 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 Caterpillar i.e., Caterpillar and Calamos ETF go up and down completely randomly.
Pair Corralation between Caterpillar and Calamos ETF
Considering the 90-day investment horizon Caterpillar is expected to generate 9.73 times more return on investment than Calamos ETF. However, Caterpillar is 9.73 times more volatile than Calamos ETF Trust. It trades about 0.16 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.3 per unit of risk. If you would invest 37,620 in Caterpillar on September 1, 2024 and sell it today you would earn a total of 2,991 from holding Caterpillar or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Caterpillar vs. Calamos ETF Trust
Performance |
| Timeline |
| Caterpillar |
| Calamos ETF Trust |
Caterpillar and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Calamos ETF
The main advantage of trading using opposite Caterpillar and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar 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.| Caterpillar vs. AGCO Corporation | Caterpillar vs. Nikola Corp | Caterpillar vs. PACCAR Inc | Caterpillar vs. Deere Company |
| Calamos ETF vs. Vanguard Total Stock | Calamos ETF vs. SPDR SP 500 | Calamos ETF vs. iShares Core SP | Calamos ETF vs. Vanguard Total Bond |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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