Correlation Between ATT and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Calamos ETF Trust, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Calamos ETF.
Diversification Opportunities for ATT and Calamos ETF
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ATT and Calamos is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc 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 ATT 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 ATT Inc 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 ATT i.e., ATT and Calamos ETF go up and down completely randomly.
Pair Corralation between ATT and Calamos ETF
Taking into account the 90-day investment horizon ATT Inc is expected to generate 8.91 times more return on investment than Calamos ETF. However, ATT is 8.91 times more volatile than Calamos ETF Trust. It trades about 0.14 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 1,564 in ATT Inc on September 14, 2024 and sell it today you would earn a total of 786.50 from holding ATT Inc or generate 50.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 28.92% |
| Values | Daily Returns |
ATT Inc vs. Calamos ETF Trust
Performance |
| Timeline |
| ATT Inc |
| Calamos ETF Trust |
ATT and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Calamos ETF
The main advantage of trading using opposite ATT and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.The idea behind ATT Inc and Calamos ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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