Correlation Between Goldman Sachs and Calamos ETF

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

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

Diversification Opportunities for Goldman Sachs and Calamos ETF

-0.64

Correlation Coefficient

Goldman Sachs  Calamos ETF

Excellent diversification

The 3 months correlation between Goldman and Calamos is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future 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 Goldman Sachs 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 Goldman Sachs Future 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 Goldman Sachs i.e., Goldman Sachs and Calamos ETF go up and down completely randomly.

Pair Corralation between Goldman Sachs and Calamos ETF

Given the investment horizon of 90 days Goldman Sachs Future is expected to under-perform the Calamos ETF. In addition to that, Goldman Sachs is 6.8 times more volatile than Calamos ETF Trust. It trades about -0.3 of its total potential returns per unit of risk. Calamos ETF Trust is currently generating about 0.0 per unit of volatility. If you would invest  2,536  in Calamos ETF Trust on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Calamos ETF Trust or generate 0.0% return on investment over 90 days.

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

Goldman Sachs Future  vs.  Calamos ETF Trust

Goldman Sachs Future

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Future has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Goldman Sachs is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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.

Pair Trading with Goldman Sachs and Calamos ETF

The main advantage of trading using opposite Goldman Sachs and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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 Goldman Sachs Future 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.