Correlation Between Innovator ETFs and Calamos ETF

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

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

Diversification Opportunities for Innovator ETFs and Calamos ETF

0.0

Correlation Coefficient

Innovator ETFs  Calamos ETF

Pay attention - limited upside

The 3 months correlation between Innovator and Calamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Innovator ETFs Trust 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 Innovator ETFs 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 Innovator ETFs Trust 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 Innovator ETFs i.e., Innovator ETFs and Calamos ETF go up and down completely randomly.

Pair Corralation between Innovator ETFs and Calamos ETF

If you would invest  2,923  in Innovator ETFs Trust on September 12, 2024 and sell it today you would earn a total of  6.00  from holding Innovator ETFs Trust or generate 0.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Innovator ETFs Trust  vs.  Calamos ETF Trust

Innovator ETFs Trust

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Innovator ETFs Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Innovator ETFs is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Calamos ETF Trust

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Calamos ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Calamos ETF is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Innovator ETFs and Calamos ETF

The main advantage of trading using opposite Innovator ETFs and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator ETFs 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 Innovator ETFs Trust 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.