Correlation Between Calamos ETF and First Trust
Can any of the company-specific risk be diversified away by investing in both Calamos ETF and First Trust 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 First Trust 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 First Trust Exchange Traded, you can compare the effects of market volatilities on Calamos ETF and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos ETF and First Trust.
Diversification Opportunities for Calamos ETF and First Trust
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and First is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and First Trust Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Exchange 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Exchange has no effect on the direction of Calamos ETF i.e., Calamos ETF and First Trust go up and down completely randomly.
Pair Corralation between Calamos ETF and First Trust
Given the investment horizon of 90 days Calamos ETF Trust is expected to generate 0.61 times more return on investment than First Trust. However, Calamos ETF Trust is 1.65 times less risky than First Trust. It trades about 0.37 of its potential returns per unit of risk. First Trust Exchange Traded is currently generating about 0.14 per unit of risk. If you would invest 2,400 in Calamos ETF Trust on April 26, 2025 and sell it today you would earn a total of 103.00 from holding Calamos ETF Trust or generate 4.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Calamos ETF Trust vs. First Trust Exchange Traded
Performance |
Timeline |
Calamos ETF Trust |
First Trust Exchange |
Calamos ETF and First Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calamos ETF and First Trust
The main advantage of trading using opposite Calamos ETF and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos ETF position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.Calamos ETF vs. FT Vest Equity | Calamos ETF vs. Northern Lights | Calamos ETF vs. Dimensional International High | Calamos ETF vs. Horizon Funds |
First Trust vs. Columbia Diversified Fixed | First Trust vs. MFS Active Core | First Trust vs. Doubleline Etf Trust | First Trust vs. Virtus Newfleet ABSMBS |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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