Correlation Between IShares Trust and Calamos Laddered

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

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

Diversification Opportunities for IShares Trust and Calamos Laddered

0.91

Correlation Coefficient

IShares Trust  Calamos Laddered

Almost no diversification

The 3 months correlation between IShares and Calamos is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Calamos Laddered SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Laddered and IShares Trust 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 iShares Trust are associated (or correlated) with Calamos Laddered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Laddered has no effect on the direction of IShares Trust i.e., IShares Trust and Calamos Laddered go up and down completely randomly.

Pair Corralation between IShares Trust and Calamos Laddered

Given the investment horizon of 90 days iShares Trust is expected to generate 2.63 times more return on investment than Calamos Laddered. However, IShares Trust is 2.63 times more volatile than Calamos Laddered SP. It trades about 0.23 of its potential returns per unit of risk. Calamos Laddered SP is currently generating about 0.29 per unit of risk. If you would invest  3,092  in iShares Trust on May 3, 2025 and sell it today you would earn a total of  224.00  from holding iShares Trust or generate 7.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

iShares Trust  vs.  Calamos Laddered SP

iShares Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal fundamental indicators, IShares Trust may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 22 (%) 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.

Pair Trading with IShares Trust and Calamos Laddered

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

The idea behind iShares Trust and Calamos Laddered SP 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.