Correlation Between Calamos ETF and KBUY

Can any of the company-specific risk be diversified away by investing in both Calamos ETF and KBUY 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 Calamos ETF and KBUY into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calamos ETF Trust and KBUY, you can compare the effects of market volatilities on Calamos ETF and KBUY 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 Calamos ETF with a short position of KBUY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos ETF and KBUY.

Diversification Opportunities for Calamos ETF and KBUY

-0.68

Correlation Coefficient

Calamos ETF  KBUY

Excellent diversification

The 3 months correlation between Calamos and KBUY is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and KBUY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBUY and Calamos ETF 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 Calamos ETF Trust are associated (or correlated) with KBUY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBUY has no effect on the direction of Calamos ETF i.e., Calamos ETF and KBUY go up and down completely randomly.

Pair Corralation between Calamos ETF and KBUY

Given the investment horizon of 90 days Calamos ETF Trust is expected to generate 0.1 times more return on investment than KBUY. However, Calamos ETF Trust is 10.09 times less risky than KBUY. It trades about 0.18 of its potential returns per unit of risk. KBUY is currently generating about -0.04 per unit of risk. If you would invest  2,475  in Calamos ETF Trust on September 21, 2024 and sell it today you would earn a total of  50.00  from holding Calamos ETF Trust or generate 2.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	55.0%
Values	Daily Returns

Calamos ETF Trust  vs.  KBUY

Calamos ETF Trust

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos ETF Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Calamos ETF is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

KBUY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KBUY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, KBUY is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos ETF and KBUY

The main advantage of trading using opposite Calamos ETF and KBUY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos ETF position performs unexpectedly, KBUY 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 KBUY will offset losses from the drop in KBUY's long position.

The idea behind Calamos ETF Trust and KBUY 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.