Correlation Between Chevron Corp and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Chevron Corp 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 Chevron Corp and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and Calamos ETF Trust, you can compare the effects of market volatilities on Chevron Corp 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 Chevron Corp with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Calamos ETF.
Diversification Opportunities for Chevron Corp and Calamos ETF
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and Calamos is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp 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 Chevron Corp 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 Chevron Corp 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 Chevron Corp i.e., Chevron Corp and Calamos ETF go up and down completely randomly.
Pair Corralation between Chevron Corp and Calamos ETF
Considering the 90-day investment horizon Chevron Corp is expected to generate 9.54 times more return on investment than Calamos ETF. However, Chevron Corp is 9.54 times more volatile than Calamos ETF Trust. It trades about 0.04 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.12 per unit of risk. If you would invest 15,414 in Chevron Corp on September 1, 2024 and sell it today you would earn a total of 779.00 from holding Chevron Corp or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.92% |
| Values | Daily Returns |
Chevron Corp vs. Calamos ETF Trust
Performance |
| Timeline |
| Chevron Corp |
| Calamos ETF Trust |
Chevron Corp and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and Calamos ETF
The main advantage of trading using opposite Chevron Corp and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp 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.| Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Equinor ASA ADR | Chevron Corp vs. Petrleo Brasileiro SA |
| Calamos ETF vs. FT Vest Equity | Calamos ETF vs. Northern Lights | Calamos ETF vs. Dimensional International High | Calamos ETF vs. Matthews China Discovery |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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