Correlation Between MicroSectors FANG and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both MicroSectors FANG 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 MicroSectors FANG and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MicroSectors FANG ETN and Calamos ETF Trust, you can compare the effects of market volatilities on MicroSectors FANG 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 MicroSectors FANG with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroSectors FANG and Calamos ETF.
Diversification Opportunities for MicroSectors FANG and Calamos ETF
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MicroSectors and Calamos is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding MicroSectors FANG ETN 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 MicroSectors FANG 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 MicroSectors FANG ETN 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 MicroSectors FANG i.e., MicroSectors FANG and Calamos ETF go up and down completely randomly.
Pair Corralation between MicroSectors FANG and Calamos ETF
Given the investment horizon of 90 days MicroSectors FANG ETN is expected to generate 5.76 times more return on investment than Calamos ETF. However, MicroSectors FANG is 5.76 times more volatile than Calamos ETF Trust. It trades about 0.12 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.19 per unit of risk. If you would invest 2,109 in MicroSectors FANG ETN on August 30, 2024 and sell it today you would earn a total of 3,212 from holding MicroSectors FANG ETN or generate 152.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 21.41% |
| Values | Daily Returns |
MicroSectors FANG ETN vs. Calamos ETF Trust
Performance |
| Timeline |
| MicroSectors FANG ETN |
| Calamos ETF Trust |
MicroSectors FANG and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroSectors FANG and Calamos ETF
The main advantage of trading using opposite MicroSectors FANG and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroSectors FANG 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.| MicroSectors FANG vs. Freedom Day Dividend | MicroSectors FANG vs. Franklin Templeton ETF | MicroSectors FANG vs. iShares MSCI China | MicroSectors FANG vs. Tidal Trust II |
| Calamos ETF vs. Dimensional ETF Trust | Calamos ETF vs. Vanguard Small Cap Index | Calamos ETF vs. First Trust Multi Manager | Calamos ETF vs. Vanguard SP Small Cap |
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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