Correlation Between Jpmorgan Equity and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Calamos Market 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 Jpmorgan Equity and Calamos Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Income and Calamos Market Neutral, you can compare the effects of market volatilities on Jpmorgan Equity and Calamos Market 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 Jpmorgan Equity with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Calamos Market.
Diversification Opportunities for Jpmorgan Equity and Calamos Market
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Calamos is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Income and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral and Jpmorgan Equity 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 Jpmorgan Equity Income are associated (or correlated) with Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Calamos Market go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Calamos Market
Assuming the 90 days horizon Jpmorgan Equity Income is expected to generate 7.47 times more return on investment than Calamos Market. However, Jpmorgan Equity is 7.47 times more volatile than Calamos Market Neutral. It trades about 0.21 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.22 per unit of risk. If you would invest 2,630 in Jpmorgan Equity Income on August 28, 2024 and sell it today you would earn a total of 97.00 from holding Jpmorgan Equity Income or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jpmorgan Equity Income vs. Calamos Market Neutral
Performance |
| Timeline |
| Jpmorgan Equity Income |
| Calamos Market Neutral |
Jpmorgan Equity and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Calamos Market
The main advantage of trading using opposite Jpmorgan Equity and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Calamos Market 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 Market will offset losses from the drop in Calamos Market's long position.| Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 |
| Calamos Market vs. Tax Managed Large Cap | Calamos Market vs. Qs Large Cap | Calamos Market vs. Old Westbury Large | Calamos Market vs. Quantitative U S |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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