Correlation Between GM and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both GM 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 GM and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Calamos ETF Trust, you can compare the effects of market volatilities on GM 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 GM with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Calamos ETF.
Diversification Opportunities for GM and Calamos ETF
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and Calamos is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding General Motors 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 GM 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 General Motors 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 GM i.e., GM and Calamos ETF go up and down completely randomly.
Pair Corralation between GM and Calamos ETF
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Calamos ETF. In addition to that, GM is 17.55 times more volatile than Calamos ETF Trust. It trades about -0.16 of its total potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.46 per unit of volatility. If you would invest 2,458 in Calamos ETF Trust on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Calamos ETF Trust or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 36.36% |
| Values | Daily Returns |
General Motors vs. Calamos ETF Trust
Performance |
| Timeline |
| General Motors |
| Calamos ETF Trust |
GM and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Calamos ETF
The main advantage of trading using opposite GM and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM 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.The idea behind General Motors and Calamos ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Calamos ETF vs. FT Vest Equity | Calamos ETF vs. Northern Lights | Calamos ETF vs. Dimensional International High | Calamos ETF vs. JPMorgan Fundamental Data |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |