Correlation Between Vanguard FTSE and Calamos ETF
Can any of the company-specific risk be diversified away by investing in both Vanguard FTSE 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 FTSE 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 FTSE Emerging and Calamos ETF Trust, you can compare the effects of market volatilities on Vanguard FTSE 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 FTSE with a short position of Calamos ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard FTSE and Calamos ETF.
Diversification Opportunities for Vanguard FTSE and Calamos ETF
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vanguard and Calamos is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE Emerging 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 FTSE 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 FTSE Emerging 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 FTSE i.e., Vanguard FTSE and Calamos ETF go up and down completely randomly.
Pair Corralation between Vanguard FTSE and Calamos ETF
Considering the 90-day investment horizon Vanguard FTSE Emerging is expected to generate 7.25 times more return on investment than Calamos ETF. However, Vanguard FTSE is 7.25 times more volatile than Calamos ETF Trust. It trades about 0.04 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.09 per unit of risk. If you would invest 3,793 in Vanguard FTSE Emerging on August 26, 2024 and sell it today you would earn a total of 748.00 from holding Vanguard FTSE Emerging or generate 19.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 8.05% |
| Values | Daily Returns |
Vanguard FTSE Emerging vs. Calamos ETF Trust
Performance |
| Timeline |
| Vanguard FTSE Emerging |
| Calamos ETF Trust |
Vanguard FTSE and Calamos ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard FTSE and Calamos ETF
The main advantage of trading using opposite Vanguard FTSE and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard FTSE 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 FTSE vs. Vanguard FTSE Developed | Vanguard FTSE vs. Vanguard Real Estate | Vanguard FTSE vs. Vanguard Small Cap Index | Vanguard FTSE vs. Vanguard Total Stock |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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