Correlation Between Matthews China and Calamos ETF

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

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

Diversification Opportunities for Matthews China and Calamos ETF

-0.47

Correlation Coefficient

Matthews China  Calamos ETF

Very good diversification

The 3 months correlation between Matthews and Calamos is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Discovery 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 Matthews China 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 Matthews China Discovery 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 Matthews China i.e., Matthews China and Calamos ETF go up and down completely randomly.

Pair Corralation between Matthews China and Calamos ETF

Given the investment horizon of 90 days Matthews China Discovery is expected to under-perform the Calamos ETF. In addition to that, Matthews China is 6.75 times more volatile than Calamos ETF Trust. It trades about -0.08 of its total potential returns per unit of risk. Calamos ETF Trust is currently generating about -0.08 per unit of volatility. If you would invest  2,577  in Calamos ETF Trust on October 11, 2024 and sell it today you would lose (22.00) from holding Calamos ETF Trust or give up 0.85% of portfolio value over 90 days.

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

Matthews China Discovery  vs.  Calamos ETF Trust

Matthews China Discovery

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Matthews China Discovery has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's technical indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Calamos ETF Trust

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos ETF Trust are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, Calamos ETF is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Matthews China and Calamos ETF

The main advantage of trading using opposite Matthews China and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews China 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 Matthews China Discovery 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.