Correlation Between Calamos Antetokounmpo and TCW ETF

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

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

Diversification Opportunities for Calamos Antetokounmpo and TCW ETF

0.46

Correlation Coefficient

Calamos Antetokounmpo  TCW ETF

Very weak diversification

The 3 months correlation between Calamos and TCW is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Antetokounmpo Global and TCW ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TCW ETF Trust and Calamos Antetokounmpo 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 Calamos Antetokounmpo Global are associated (or correlated) with TCW ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TCW ETF Trust has no effect on the direction of Calamos Antetokounmpo i.e., Calamos Antetokounmpo and TCW ETF go up and down completely randomly.

Pair Corralation between Calamos Antetokounmpo and TCW ETF

Given the investment horizon of 90 days Calamos Antetokounmpo Global is expected to generate 0.53 times more return on investment than TCW ETF. However, Calamos Antetokounmpo Global is 1.88 times less risky than TCW ETF. It trades about -0.01 of its potential returns per unit of risk. TCW ETF Trust is currently generating about -0.25 per unit of risk. If you would invest  2,946  in Calamos Antetokounmpo Global on December 5, 2024 and sell it today you would lose (5.00) from holding Calamos Antetokounmpo Global or give up 0.17% of portfolio value over 90 days.

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

Calamos Antetokounmpo Global  vs.  TCW ETF Trust

Calamos Antetokounmpo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Antetokounmpo Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Calamos Antetokounmpo is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

TCW ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days TCW ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Etf's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with Calamos Antetokounmpo and TCW ETF

The main advantage of trading using opposite Calamos Antetokounmpo and TCW ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Antetokounmpo position performs unexpectedly, TCW 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 TCW ETF will offset losses from the drop in TCW ETF's long position.

The idea behind Calamos Antetokounmpo Global and TCW 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.