Correlation Between Coca Cola and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Coca Cola 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 Coca Cola and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and Calamos ETF Trust, you can compare the effects of market volatilities on Coca Cola 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 Coca Cola with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Calamos ETF.
Diversification Opportunities for Coca Cola and Calamos ETF
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Calamos is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola 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 Coca Cola 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 The Coca Cola 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 Coca Cola i.e., Coca Cola and Calamos ETF go up and down completely randomly.
Pair Corralation between Coca Cola and Calamos ETF
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 5.7 times more return on investment than Calamos ETF. However, Coca Cola is 5.7 times more volatile than Calamos ETF Trust. It trades about 0.06 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.24 per unit of risk. If you would invest 5,709 in The Coca Cola on September 14, 2024 and sell it today you would earn a total of 671.50 from holding The Coca Cola or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 28.92% |
| Values | Daily Returns |
The Coca Cola vs. Calamos ETF Trust
Performance |
| Timeline |
| Coca Cola |
| Calamos ETF Trust |
Coca Cola and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Calamos ETF
The main advantage of trading using opposite Coca Cola and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola 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.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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