Correlation Between Direxion Daily and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Direxion Daily 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 Direxion Daily and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Daily NVDA and Calamos ETF Trust, you can compare the effects of market volatilities on Direxion Daily 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 Direxion Daily with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Daily and Calamos ETF.
Diversification Opportunities for Direxion Daily and Calamos ETF
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Direxion and Calamos is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Daily NVDA 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 Direxion Daily 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 Direxion Daily NVDA 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 Direxion Daily i.e., Direxion Daily and Calamos ETF go up and down completely randomly.
Pair Corralation between Direxion Daily and Calamos ETF
Given the investment horizon of 90 days Direxion Daily NVDA is expected to under-perform the Calamos ETF. In addition to that, Direxion Daily is 47.95 times more volatile than Calamos ETF Trust. It trades about -0.21 of its total potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.19 per unit of volatility. If you would invest 2,525 in Calamos ETF Trust on September 14, 2024 and sell it today you would earn a total of 12.00 from holding Calamos ETF Trust or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Daily NVDA vs. Calamos ETF Trust
Performance |
| Timeline |
| Direxion Daily NVDA |
| Calamos ETF Trust |
Direxion Daily and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Daily and Calamos ETF
The main advantage of trading using opposite Direxion Daily and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Daily 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.| Direxion Daily vs. Freedom Day Dividend | Direxion Daily vs. Franklin Templeton ETF | Direxion Daily vs. iShares MSCI China | Direxion Daily vs. Tidal Trust II |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |