Correlation Between TCW ETF and Calamos Antetokounmpo

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

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

Diversification Opportunities for TCW ETF and Calamos Antetokounmpo

0.05

Correlation Coefficient

TCW ETF  Calamos Antetokounmpo

Significant diversification

The 3 months correlation between TCW and Calamos is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding TCW ETF Trust and Calamos Antetokounmpo Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Antetokounmpo and TCW ETF 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 TCW ETF Trust are associated (or correlated) with Calamos Antetokounmpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Antetokounmpo has no effect on the direction of TCW ETF i.e., TCW ETF and Calamos Antetokounmpo go up and down completely randomly.

Pair Corralation between TCW ETF and Calamos Antetokounmpo

Given the investment horizon of 90 days TCW ETF Trust is expected to generate 1.6 times more return on investment than Calamos Antetokounmpo. However, TCW ETF is 1.6 times more volatile than Calamos Antetokounmpo Global. It trades about 0.06 of its potential returns per unit of risk. Calamos Antetokounmpo Global is currently generating about 0.01 per unit of risk. If you would invest  6,439  in TCW ETF Trust on September 16, 2024 and sell it today you would earn a total of  209.00  from holding TCW ETF Trust or generate 3.25% return on investment over 90 days.

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

TCW ETF Trust  vs.  Calamos Antetokounmpo Global

TCW ETF Trust

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TCW ETF Trust are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, TCW ETF is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Calamos Antetokounmpo

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Antetokounmpo Global are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Calamos Antetokounmpo is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with TCW ETF and Calamos Antetokounmpo

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

The idea behind TCW ETF Trust and Calamos Antetokounmpo Global 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.

Check out your portfolio center.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.