Correlation Between Innovator and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Innovator 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 Innovator and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator SP 500 and Calamos ETF Trust, you can compare the effects of market volatilities on Innovator 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 Innovator with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator and Calamos ETF.
Diversification Opportunities for Innovator and Calamos ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Innovator and Calamos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Innovator SP 500 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 Innovator 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 Innovator SP 500 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 Innovator i.e., Innovator and Calamos ETF go up and down completely randomly.
Pair Corralation between Innovator and Calamos ETF
Given the investment horizon of 90 days Innovator SP 500 is expected to generate 2.14 times more return on investment than Calamos ETF. However, Innovator is 2.14 times more volatile than Calamos ETF Trust. It trades about 0.17 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 3,327 in Innovator SP 500 on September 14, 2024 and sell it today you would earn a total of 447.40 from holding Innovator SP 500 or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 28.92% |
| Values | Daily Returns |
Innovator SP 500 vs. Calamos ETF Trust
Performance |
| Timeline |
| Innovator SP 500 |
| Calamos ETF Trust |
Innovator and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator and Calamos ETF
The main advantage of trading using opposite Innovator and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator 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.| Innovator vs. Innovator SP 500 | Innovator vs. Innovator SP 500 | Innovator vs. Innovator SP 500 | Innovator vs. Innovator Equity Power |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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