Correlation Between FT Cboe and Calamos SP
Can any of the company-specific risk be diversified away by investing in both FT Cboe and Calamos SP 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 FT Cboe and Calamos SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Cboe Vest and Calamos SP 500, you can compare the effects of market volatilities on FT Cboe and Calamos SP 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 FT Cboe with a short position of Calamos SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Cboe and Calamos SP.
Diversification Opportunities for FT Cboe and Calamos SP
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between BUFD and Calamos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding FT Cboe Vest and Calamos SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos SP 500 and FT Cboe 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 FT Cboe Vest are associated (or correlated) with Calamos SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos SP 500 has no effect on the direction of FT Cboe i.e., FT Cboe and Calamos SP go up and down completely randomly.
Pair Corralation between FT Cboe and Calamos SP
Given the investment horizon of 90 days FT Cboe Vest is expected to generate 2.58 times more return on investment than Calamos SP. However, FT Cboe is 2.58 times more volatile than Calamos SP 500. It trades about 0.17 of its potential returns per unit of risk. Calamos SP 500 is currently generating about 0.23 per unit of risk. If you would invest 2,695 in FT Cboe Vest on July 26, 2025 and sell it today you would earn a total of 83.00 from holding FT Cboe Vest or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Cboe Vest vs. Calamos SP 500
Performance |
| Timeline |
| FT Cboe Vest |
| Calamos SP 500 |
FT Cboe and Calamos SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Cboe and Calamos SP
The main advantage of trading using opposite FT Cboe and Calamos SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Cboe position performs unexpectedly, Calamos SP 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 SP will offset losses from the drop in Calamos SP's long position.| FT Cboe vs. FT Cboe Vest | FT Cboe vs. First Trust Technology | FT Cboe vs. Brown Advisory Flexible | FT Cboe vs. Franklin Templeton ETF |
| Calamos SP vs. Pacer Swan SOS | Calamos SP vs. Calamos SP 500 | Calamos SP vs. Calamos ETF Trust | Calamos SP vs. Calamos ETF Trust |
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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