Correlation Between Calamos ETF and Goldman Sachs

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

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

Diversification Opportunities for Calamos ETF and Goldman Sachs

0.62

Correlation Coefficient

Calamos ETF  Goldman Sachs

Poor diversification

The 3 months correlation between Calamos and Goldman is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and Goldman Sachs Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Future and Calamos 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 Calamos ETF Trust are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Future has no effect on the direction of Calamos ETF i.e., Calamos ETF and Goldman Sachs go up and down completely randomly.

Pair Corralation between Calamos ETF and Goldman Sachs

Given the investment horizon of 90 days Calamos ETF Trust is expected to generate 0.17 times more return on investment than Goldman Sachs. However, Calamos ETF Trust is 5.79 times less risky than Goldman Sachs. It trades about 0.33 of its potential returns per unit of risk. Goldman Sachs Future is currently generating about -0.16 per unit of risk. If you would invest  2,509  in Calamos ETF Trust on September 13, 2024 and sell it today you would earn a total of  29.00  from holding Calamos ETF Trust or generate 1.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	46.03%
Values	Daily Returns

Calamos ETF Trust  vs.  Goldman Sachs Future

Calamos ETF Trust

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos ETF Trust are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Calamos ETF is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Goldman Sachs Future

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Future has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Etf's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the Etf traders.

Pair Trading with Calamos ETF and Goldman Sachs

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

The idea behind Calamos ETF Trust and Goldman Sachs Future 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.