Correlation Between Innovator ETFs and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Innovator ETFs 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 Innovator ETFs and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator ETFs Trust and Calamos ETF Trust, you can compare the effects of market volatilities on Innovator ETFs 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 Innovator ETFs with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator ETFs and Calamos ETF.
Diversification Opportunities for Innovator ETFs and Calamos ETF
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Innovator and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust 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 Innovator ETFs 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 Innovator ETFs Trust 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 Innovator ETFs i.e., Innovator ETFs and Calamos ETF go up and down completely randomly.
Pair Corralation between Innovator ETFs and Calamos ETF
Given the investment horizon of 90 days Innovator ETFs Trust is expected to generate 2.11 times more return on investment than Calamos ETF. However, Innovator ETFs is 2.11 times more volatile than Calamos ETF Trust. It trades about 0.23 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.14 per unit of risk. If you would invest 2,872 in Innovator ETFs Trust on October 25, 2024 and sell it today you would earn a total of 53.00 from holding Innovator ETFs Trust or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator ETFs Trust vs. Calamos ETF Trust
Performance |
| Timeline |
| Innovator ETFs Trust |
| Calamos ETF Trust |
Innovator ETFs and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator ETFs and Calamos ETF
The main advantage of trading using opposite Innovator ETFs and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs 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.| Innovator ETFs vs. Invesco Actively Managed | Innovator ETFs vs. Harbor ETF Trust | Innovator ETFs vs. iShares Trust | Innovator ETFs vs. Xtrackers MSCI Emerging |
| Calamos ETF vs. FT Vest Equity | Calamos ETF vs. Northern Lights | Calamos ETF vs. Dimensional International High | Calamos ETF vs. First Trust Exchange Traded |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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