Correlation Between Home Depot and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Home Depot 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 Home Depot and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Depot and Calamos ETF Trust, you can compare the effects of market volatilities on Home Depot 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 Home Depot with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Calamos ETF.
Diversification Opportunities for Home Depot and Calamos ETF
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Home and Calamos is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Home Depot 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 Home Depot 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 Home Depot 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 Home Depot i.e., Home Depot and Calamos ETF go up and down completely randomly.
Pair Corralation between Home Depot and Calamos ETF
Allowing for the 90-day total investment horizon Home Depot is expected to generate 10.15 times more return on investment than Calamos ETF. However, Home Depot is 10.15 times more volatile than Calamos ETF Trust. It trades about 0.09 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 40,804 in Home Depot on September 14, 2024 and sell it today you would earn a total of 966.00 from holding Home Depot or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Home Depot vs. Calamos ETF Trust
Performance |
| Timeline |
| Home Depot |
| Calamos ETF Trust |
Home Depot and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Depot and Calamos ETF
The main advantage of trading using opposite Home Depot and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Depot 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.| Home Depot vs. Aquagold International | Home Depot vs. Thrivent High Yield | Home Depot vs. Morningstar Unconstrained Allocation | Home Depot vs. Via Renewables |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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