Correlation Between Calamos ETF and OShares Quality
Can any of the company-specific risk be diversified away by investing in both Calamos ETF and OShares Quality 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 OShares Quality 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 OShares Quality Dividend, you can compare the effects of market volatilities on Calamos ETF and OShares Quality 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 OShares Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos ETF and OShares Quality.
Diversification Opportunities for Calamos ETF and OShares Quality
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and OShares is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and OShares Quality Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OShares Quality Dividend 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 OShares Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OShares Quality Dividend has no effect on the direction of Calamos ETF i.e., Calamos ETF and OShares Quality go up and down completely randomly.
Pair Corralation between Calamos ETF and OShares Quality
Given the investment horizon of 90 days Calamos ETF is expected to generate 2.2 times less return on investment than OShares Quality. But when comparing it to its historical volatility, Calamos ETF Trust is 4.63 times less risky than OShares Quality. It trades about 0.22 of its potential returns per unit of risk. OShares Quality Dividend is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,925 in OShares Quality Dividend on September 26, 2024 and sell it today you would earn a total of 431.00 from holding OShares Quality Dividend or generate 8.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 64.0% |
Values | Daily Returns |
Calamos ETF Trust vs. OShares Quality Dividend
Performance |
Timeline |
Calamos ETF Trust |
OShares Quality Dividend |
Calamos ETF and OShares Quality Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos ETF and OShares Quality
The main advantage of trading using opposite Calamos ETF and OShares Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos ETF position performs unexpectedly, OShares Quality 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 OShares Quality will offset losses from the drop in OShares Quality's long position.Calamos ETF vs. FT Vest Equity | Calamos ETF vs. Northern Lights | Calamos ETF vs. Dimensional International High | Calamos ETF vs. JPMorgan Fundamental Data |
OShares Quality vs. Salon City | OShares Quality vs. Northern Lights | OShares Quality vs. Sterling Capital Focus | OShares Quality vs. Aquagold International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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