Correlation Between Calamos SP and WisdomTree Continuous

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

By analyzing existing cross correlation between Calamos SP 500 and WisdomTree Continuous Commodity, you can compare the effects of market volatilities on Calamos SP and WisdomTree Continuous 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 SP with a short position of WisdomTree Continuous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos SP and WisdomTree Continuous.

Diversification Opportunities for Calamos SP and WisdomTree Continuous

0.85

Correlation Coefficient

Calamos SP  WisdomTree Continuous

Very poor diversification

The 3 months correlation between Calamos and WisdomTree is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calamos SP 500 and WisdomTree Continuous Commodit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Continuous and Calamos SP 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 SP 500 are associated (or correlated) with WisdomTree Continuous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Continuous has no effect on the direction of Calamos SP i.e., Calamos SP and WisdomTree Continuous go up and down completely randomly.

Pair Corralation between Calamos SP and WisdomTree Continuous

Given the investment horizon of 90 days Calamos SP is expected to generate 6.3 times less return on investment than WisdomTree Continuous. But when comparing it to its historical volatility, Calamos SP 500 is 10.98 times less risky than WisdomTree Continuous. It trades about 0.25 of its potential returns per unit of risk. WisdomTree Continuous Commodity is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,033  in WisdomTree Continuous Commodity on October 11, 2025 and sell it today you would earn a total of  168.00  from holding WisdomTree Continuous Commodity or generate 8.26% return on investment over 90 days.

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

Calamos SP 500  vs.  WisdomTree Continuous Commodit

Calamos SP 500

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos SP 500 are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Calamos SP is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

WisdomTree Continuous

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Continuous Commodity are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, WisdomTree Continuous may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Calamos SP and WisdomTree Continuous

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

The idea behind Calamos SP 500 and WisdomTree Continuous Commodity 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.