Correlation Between IShares Core and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Calamos ETF Trust, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Calamos ETF.
Diversification Opportunities for IShares Core and Calamos ETF
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Calamos is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP 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 IShares Core 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 iShares Core SP 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 IShares Core i.e., IShares Core and Calamos ETF go up and down completely randomly.
Pair Corralation between IShares Core and Calamos ETF
Considering the 90-day investment horizon iShares Core SP is expected to generate 6.48 times more return on investment than Calamos ETF. However, IShares Core is 6.48 times more volatile than Calamos ETF Trust. It trades about 0.14 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 52,665 in iShares Core SP on September 1, 2024 and sell it today you would earn a total of 7,842 from holding iShares Core SP or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.92% |
| Values | Daily Returns |
iShares Core SP vs. Calamos ETF Trust
Performance |
| Timeline |
| iShares Core SP |
| Calamos ETF Trust |
IShares Core and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Calamos ETF
The main advantage of trading using opposite IShares Core and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. iShares SP 500 | IShares Core vs. iShares Russell 2000 |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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