Correlation Between Matthews China and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Matthews China 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 Matthews China and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews China Discovery and Calamos ETF Trust, you can compare the effects of market volatilities on Matthews China 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 Matthews China with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews China and Calamos ETF.
Diversification Opportunities for Matthews China and Calamos ETF
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Matthews and Calamos is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Discovery 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 Matthews China 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 Matthews China Discovery 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 Matthews China i.e., Matthews China and Calamos ETF go up and down completely randomly.
Pair Corralation between Matthews China and Calamos ETF
Given the investment horizon of 90 days Matthews China Discovery is expected to under-perform the Calamos ETF. In addition to that, Matthews China is 14.99 times more volatile than Calamos ETF Trust. It trades about -0.07 of its total potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.4 per unit of volatility. If you would invest 2,523 in Calamos ETF Trust on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Calamos ETF Trust or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews China Discovery vs. Calamos ETF Trust
Performance |
| Timeline |
| Matthews China Discovery |
| Calamos ETF Trust |
Matthews China and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews China and Calamos ETF
The main advantage of trading using opposite Matthews China and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews China 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.| Matthews China vs. FT Vest Equity | Matthews China vs. Northern Lights | Matthews China vs. Dimensional International High | Matthews China vs. JPMorgan Fundamental Data |
| Calamos ETF vs. Vanguard Total Stock | Calamos ETF vs. SPDR SP 500 | Calamos ETF vs. Vanguard Total Bond | Calamos ETF vs. Vanguard Value Index |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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