Correlation Between FT Vest and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both FT Vest 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 Vest 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 Vest Equity and Calamos ETF Trust, you can compare the effects of market volatilities on FT Vest 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 Vest with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Vest and Calamos ETF.
Diversification Opportunities for FT Vest and Calamos ETF
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DHDG and Calamos is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Equity 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 Vest 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 Vest Equity 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 Vest i.e., FT Vest and Calamos ETF go up and down completely randomly.
Pair Corralation between FT Vest and Calamos ETF
Given the investment horizon of 90 days FT Vest Equity is expected to under-perform the Calamos ETF. In addition to that, FT Vest is 2.81 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 -0.01 per unit of volatility. If you would invest 2,424 in Calamos ETF Trust on October 9, 2024 and sell it today you would lose (1.00) from holding Calamos ETF Trust or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Vest Equity vs. Calamos ETF Trust
Performance |
| Timeline |
| FT Vest Equity |
| Calamos ETF Trust |
FT Vest and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Vest and Calamos ETF
The main advantage of trading using opposite FT Vest and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest 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 Vest vs. Northern Lights | FT Vest vs. Dimensional International High | FT Vest vs. First Trust Exchange Traded | FT Vest vs. EA Series Trust |
| Calamos ETF vs. Innovator ETFs Trust | Calamos ETF vs. First Trust Cboe | Calamos ETF vs. FT Cboe Vest | Calamos ETF vs. Innovator SP 500 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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