Correlation Between Calamos ETF and Horizon Kinetics

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

Diversification Opportunities for Calamos ETF and Horizon Kinetics

0.69

Correlation Coefficient

Calamos ETF  Horizon Kinetics

Poor diversification

The 3 months correlation between Calamos and Horizon is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and Horizon Kinetics SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics SPAC 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 Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics SPAC has no effect on the direction of Calamos ETF i.e., Calamos ETF and Horizon Kinetics go up and down completely randomly.

Pair Corralation between Calamos ETF and Horizon Kinetics

Given the investment horizon of 90 days Calamos ETF is expected to generate 164.0 times less return on investment than Horizon Kinetics. But when comparing it to its historical volatility, Calamos ETF Trust is 1.02 times less risky than Horizon Kinetics. It trades about 0.0 of its potential returns per unit of risk. Horizon Kinetics SPAC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  9,792  in Horizon Kinetics SPAC on October 6, 2024 and sell it today you would earn a total of  32.00  from holding Horizon Kinetics SPAC or generate 0.33% return on investment over 90 days.

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

Calamos ETF Trust  vs.  Horizon Kinetics SPAC

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.

Horizon Kinetics SPAC

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Horizon Kinetics SPAC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Horizon Kinetics is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Calamos ETF and Horizon Kinetics

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

The idea behind Calamos ETF Trust and Horizon Kinetics SPAC 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.