Correlation Between Dimensional International and Calamos ETF

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

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

Diversification Opportunities for Dimensional International and Calamos ETF

-0.61

Correlation Coefficient

Dimensional International  Calamos ETF

Excellent diversification

The 3 months correlation between Dimensional and Calamos is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional International High 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 Dimensional International 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 Dimensional International High 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 Dimensional International i.e., Dimensional International and Calamos ETF go up and down completely randomly.

Pair Corralation between Dimensional International and Calamos ETF

Given the investment horizon of 90 days Dimensional International is expected to generate 1.21 times less return on investment than Calamos ETF. In addition to that, Dimensional International is 5.68 times more volatile than Calamos ETF Trust. It trades about 0.03 of its total potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.22 per unit of volatility. If you would invest  2,475  in Calamos ETF Trust on September 26, 2024 and sell it today you would earn a total of  63.00  from holding Calamos ETF Trust or generate 2.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	16.84%
Values	Daily Returns

Dimensional International High  vs.  Calamos ETF Trust

Dimensional International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dimensional International High has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Etf's technical indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

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 Dimensional International and Calamos ETF

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

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.