Correlation Between HP and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both HP 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 HP and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HP Inc and Calamos ETF Trust, you can compare the effects of market volatilities on HP 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 HP with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and Calamos ETF.
Diversification Opportunities for HP and Calamos ETF
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HP and Calamos is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc 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 HP 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 HP Inc 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 HP i.e., HP and Calamos ETF go up and down completely randomly.
Pair Corralation between HP and Calamos ETF
Considering the 90-day investment horizon HP Inc is expected to generate 14.94 times more return on investment than Calamos ETF. However, HP is 14.94 times more volatile than Calamos ETF Trust. It trades about 0.02 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 3,476 in HP Inc on September 1, 2024 and sell it today you would earn a total of 67.00 from holding HP Inc or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 34.92% |
| Values | Daily Returns |
HP Inc vs. Calamos ETF Trust
Performance |
| Timeline |
| HP Inc |
| Calamos ETF Trust |
HP and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and Calamos ETF
The main advantage of trading using opposite HP and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP 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 HP Inc 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. 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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