Correlation Between Calamos Convertible and John Hancock
Can any of the company-specific risk be diversified away by investing in both Calamos Convertible and John Hancock 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 Convertible and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Convertible Opportunities and John Hancock Financial, you can compare the effects of market volatilities on Calamos Convertible and John Hancock 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 Convertible with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Convertible and John Hancock.
Diversification Opportunities for Calamos Convertible and John Hancock
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calamos and John is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Convertible Opportunit and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Calamos Convertible 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 Convertible Opportunities are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Financial has no effect on the direction of Calamos Convertible i.e., Calamos Convertible and John Hancock go up and down completely randomly.
Pair Corralation between Calamos Convertible and John Hancock
Considering the 90-day investment horizon Calamos Convertible is expected to generate 1.69 times less return on investment than John Hancock. But when comparing it to its historical volatility, Calamos Convertible Opportunities is 1.69 times less risky than John Hancock. It trades about 0.12 of its potential returns per unit of risk. John Hancock Financial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,436 in John Hancock Financial on August 24, 2024 and sell it today you would earn a total of 1,387 from holding John Hancock Financial or generate 56.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Convertible Opportunit vs. John Hancock Financial
Performance |
| Timeline |
| Calamos Convertible |
| John Hancock Financial |
Calamos Convertible and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Convertible and John Hancock
The main advantage of trading using opposite Calamos Convertible and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Convertible position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Calamos Convertible vs. MFS Investment Grade | Calamos Convertible vs. Eaton Vance National | Calamos Convertible vs. Blackrock Muniyield Quality | Calamos Convertible vs. Munivest Fund |
| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings 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 |