Correlation Between Calamos Laddered and WisdomTree Inflation

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

By analyzing existing cross correlation between Calamos Laddered SP and WisdomTree Inflation Plus, you can compare the effects of market volatilities on Calamos Laddered and WisdomTree Inflation 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 Laddered with a short position of WisdomTree Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Laddered and WisdomTree Inflation.

Diversification Opportunities for Calamos Laddered and WisdomTree Inflation

0.42

Correlation Coefficient

Calamos Laddered  WisdomTree Inflation

Very weak diversification

The 3 months correlation between Calamos and WisdomTree is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Laddered SP and WisdomTree Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Inflation Plus and Calamos Laddered 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 Laddered SP are associated (or correlated) with WisdomTree Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Inflation Plus has no effect on the direction of Calamos Laddered i.e., Calamos Laddered and WisdomTree Inflation go up and down completely randomly.

Pair Corralation between Calamos Laddered and WisdomTree Inflation

Given the investment horizon of 90 days Calamos Laddered SP is expected to generate 0.27 times more return on investment than WisdomTree Inflation. However, Calamos Laddered SP is 3.7 times less risky than WisdomTree Inflation. It trades about 0.28 of its potential returns per unit of risk. WisdomTree Inflation Plus is currently generating about 0.04 per unit of risk. If you would invest  2,561  in Calamos Laddered SP on May 8, 2025 and sell it today you would earn a total of  85.00  from holding Calamos Laddered SP or generate 3.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	54.1%
Values	Daily Returns

Calamos Laddered SP  vs.  WisdomTree Inflation Plus

Calamos Laddered

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Laddered SP are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Calamos Laddered is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

WisdomTree Inflation Plus

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Inflation Plus are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward indicators, WisdomTree Inflation is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Calamos Laddered and WisdomTree Inflation

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

The idea behind Calamos Laddered SP and WisdomTree Inflation Plus 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.