Correlation Between NYSE Composite and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Calamos ETF Trust, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Calamos ETF.
Diversification Opportunities for NYSE Composite and Calamos ETF
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Calamos is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Calamos ETF go up and down completely randomly.
Pair Corralation between NYSE Composite and Calamos ETF
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.31 times more return on investment than Calamos ETF. However, NYSE Composite is 4.31 times more volatile than Calamos ETF Trust. It trades about 0.27 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.14 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Calamos ETF Trust
Performance |
| Timeline |
NYSE Composite and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Calamos ETF Trust
Pair trading matchups for Calamos ETF
Pair Trading with NYSE Composite and Calamos ETF
The main advantage of trading using opposite NYSE Composite and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Calamos ETF vs. Vanguard Total Stock | Calamos ETF vs. SPDR SP 500 | Calamos ETF vs. iShares Core SP | Calamos ETF vs. Vanguard Total Bond |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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