Correlation Between Vanguard Growth and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Vanguard Growth 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 Vanguard Growth and Calamos ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Growth Index and Calamos ETF Trust, you can compare the effects of market volatilities on Vanguard Growth 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 Vanguard Growth with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Growth and Calamos ETF.
Diversification Opportunities for Vanguard Growth and Calamos ETF
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vanguard and Calamos is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Growth Index 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 Vanguard Growth 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 Vanguard Growth Index 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 Vanguard Growth i.e., Vanguard Growth and Calamos ETF go up and down completely randomly.
Pair Corralation between Vanguard Growth and Calamos ETF
Considering the 90-day investment horizon Vanguard Growth Index is expected to generate 3.75 times more return on investment than Calamos ETF. However, Vanguard Growth is 3.75 times more volatile than Calamos ETF Trust. It trades about 0.35 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.3 per unit of risk. If you would invest 38,292 in Vanguard Growth Index on September 1, 2024 and sell it today you would earn a total of 2,621 from holding Vanguard Growth Index or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vanguard Growth Index vs. Calamos ETF Trust
Performance |
| Timeline |
| Vanguard Growth Index |
| Calamos ETF Trust |
Vanguard Growth and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Growth and Calamos ETF
The main advantage of trading using opposite Vanguard Growth and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Growth 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.| Vanguard Growth vs. Vanguard Value Index | Vanguard Growth vs. Vanguard Information Technology | Vanguard Growth vs. Vanguard Small Cap Growth | Vanguard Growth vs. Vanguard Dividend Appreciation |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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