Correlation Between Global X and Calamos ETF

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

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

Diversification Opportunities for Global X and Calamos ETF

-0.45

Correlation Coefficient

Global X  Calamos ETF

Very good diversification

The 3 months correlation between Global and Calamos is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds 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 Global X 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 Global X Funds 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 Global X i.e., Global X and Calamos ETF go up and down completely randomly.

Pair Corralation between Global X and Calamos ETF

Given the investment horizon of 90 days Global X Funds is expected to generate 5.69 times more return on investment than Calamos ETF. However, Global X is 5.69 times more volatile than Calamos ETF Trust. It trades about 0.25 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about -0.04 per unit of risk. If you would invest  3,747  in Global X Funds on December 29, 2024 and sell it today you would earn a total of  906.00  from holding Global X Funds or generate 24.18% return on investment over 90 days.

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

Global X Funds  vs.  Calamos ETF Trust

Global X Funds

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Funds are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, Global X exhibited solid returns over the last few months and may actually be approaching a breakup point.

Calamos ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Global X and Calamos ETF

The main advantage of trading using opposite Global X and Calamos ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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 Global X Funds 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..