Correlation Between FT Vest and Calamos ETF

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

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

Diversification Opportunities for FT Vest and Calamos ETF

0.43

Correlation Coefficient

FT Vest  Calamos ETF

Very weak diversification

The 3 months correlation between DHDG and Calamos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Equity 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 FT Vest 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 FT Vest Equity 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 FT Vest i.e., FT Vest and Calamos ETF go up and down completely randomly.

Pair Corralation between FT Vest and Calamos ETF

Given the investment horizon of 90 days FT Vest Equity is expected to generate 3.12 times more return on investment than Calamos ETF. However, FT Vest is 3.12 times more volatile than Calamos ETF Trust. It trades about 0.12 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.22 per unit of risk. If you would invest  3,038  in FT Vest Equity on September 26, 2024 and sell it today you would earn a total of  75.00  from holding FT Vest Equity or generate 2.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	57.5%
Values	Daily Returns

FT Vest Equity  vs.  Calamos ETF Trust

FT Vest Equity

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FT Vest Equity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, FT Vest is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Calamos ETF Trust

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos ETF Trust are ranked lower than 10 (%) 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.

Pair Trading with FT Vest and Calamos ETF

The main advantage of trading using opposite FT Vest and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest 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.

The idea behind FT Vest Equity and Calamos ETF Trust 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .