Correlation Between Microsoft and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Microsoft 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 Microsoft and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Calamos ETF Trust, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Calamos ETF.
Diversification Opportunities for Microsoft and Calamos ETF
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Calamos is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft 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 Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and Calamos ETF go up and down completely randomly.
Pair Corralation between Microsoft and Calamos ETF
Given the investment horizon of 90 days Microsoft is expected to generate 10.6 times more return on investment than Calamos ETF. However, Microsoft is 10.6 times more volatile than Calamos ETF Trust. It trades about 0.1 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.47 per unit of risk. If you would invest 23,313 in Microsoft on September 14, 2024 and sell it today you would earn a total of 21,643 from holding Microsoft or generate 92.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.82% |
| Values | Daily Returns |
Microsoft vs. Calamos ETF Trust
Performance |
| Timeline |
| Microsoft |
| Calamos ETF Trust |
Microsoft and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Calamos ETF
The main advantage of trading using opposite Microsoft and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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