Correlation Between Calamos ETF and PGIM Ultra

Can any of the company-specific risk be diversified away by investing in both Calamos ETF and PGIM Ultra 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 PGIM Ultra 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 PGIM Ultra Short, you can compare the effects of market volatilities on Calamos ETF and PGIM Ultra 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 PGIM Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos ETF and PGIM Ultra.

Diversification Opportunities for Calamos ETF and PGIM Ultra

0.92

Correlation Coefficient

Calamos ETF  PGIM Ultra

Almost no diversification

The 3 months correlation between Calamos and PGIM is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and PGIM Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Ultra Short 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 PGIM Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Ultra Short has no effect on the direction of Calamos ETF i.e., Calamos ETF and PGIM Ultra go up and down completely randomly.

Pair Corralation between Calamos ETF and PGIM Ultra

Given the investment horizon of 90 days Calamos ETF Trust is expected to generate 4.88 times more return on investment than PGIM Ultra. However, Calamos ETF is 4.88 times more volatile than PGIM Ultra Short. It trades about 0.16 of its potential returns per unit of risk. PGIM Ultra Short is currently generating about 0.71 per unit of risk. If you would invest  2,500  in Calamos ETF Trust on October 6, 2024 and sell it today you would earn a total of  36.00  from holding Calamos ETF Trust or generate 1.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Calamos ETF Trust  vs.  PGIM Ultra Short

Calamos ETF Trust

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos ETF Trust are ranked lower than 12 (%) 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 current stock price uproar, may contribute to short-horizon losses for the private investors.

PGIM Ultra Short

Risk-Adjusted Performance

56 of 100

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in PGIM Ultra Short are ranked lower than 56 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, PGIM Ultra is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Calamos ETF and PGIM Ultra

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

The idea behind Calamos ETF Trust and PGIM Ultra Short 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.