Correlation Between Calamos ETF and Dimensional ETF
Can any of the company-specific risk be diversified away by investing in both Calamos ETF and Dimensional 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 Calamos ETF and Dimensional ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos ETF Trust and Dimensional ETF Trust, you can compare the effects of market volatilities on Calamos ETF and Dimensional 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 Calamos ETF with a short position of Dimensional ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos ETF and Dimensional ETF.
Diversification Opportunities for Calamos ETF and Dimensional ETF
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Dimensional is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and Dimensional ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional ETF Trust and Calamos ETF 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 Calamos ETF Trust are associated (or correlated) with Dimensional ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional ETF Trust has no effect on the direction of Calamos ETF i.e., Calamos ETF and Dimensional ETF go up and down completely randomly.
Pair Corralation between Calamos ETF and Dimensional ETF
Given the investment horizon of 90 days Calamos ETF Trust is expected to generate 0.3 times more return on investment than Dimensional ETF. However, Calamos ETF Trust is 3.32 times less risky than Dimensional ETF. It trades about 0.25 of its potential returns per unit of risk. Dimensional ETF Trust is currently generating about -0.11 per unit of risk. If you would invest 2,479 in Calamos ETF Trust on August 30, 2024 and sell it today you would earn a total of 35.00 from holding Calamos ETF Trust or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos ETF Trust vs. Dimensional ETF Trust
Performance |
| Timeline |
| Calamos ETF Trust |
| Dimensional ETF Trust |
Calamos ETF and Dimensional ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos ETF and Dimensional ETF
The main advantage of trading using opposite Calamos ETF and Dimensional ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos ETF position performs unexpectedly, Dimensional 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 Dimensional ETF will offset losses from the drop in Dimensional ETF's long position.| Calamos ETF vs. Vanguard Total Stock | Calamos ETF vs. SPDR SP 500 | Calamos ETF vs. iShares Core SP | Calamos ETF vs. Vanguard Total Bond |
| Dimensional ETF vs. Schwab Fundamental International | Dimensional ETF vs. Schwab Fundamental Emerging | Dimensional ETF vs. Schwab Fundamental Small | Dimensional ETF vs. Schwab Fundamental Large |
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.
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