Correlation Between John Hancock and Calamos Convertible
Can any of the company-specific risk be diversified away by investing in both John Hancock and Calamos Convertible 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 John Hancock and Calamos Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Tax and Calamos Convertible Opportunities, you can compare the effects of market volatilities on John Hancock and Calamos Convertible 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 John Hancock with a short position of Calamos Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Calamos Convertible.
Diversification Opportunities for John Hancock and Calamos Convertible
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Calamos is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax and Calamos Convertible Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Convertible and John Hancock 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 John Hancock Tax are associated (or correlated) with Calamos Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Convertible has no effect on the direction of John Hancock i.e., John Hancock and Calamos Convertible go up and down completely randomly.
Pair Corralation between John Hancock and Calamos Convertible
Considering the 90-day investment horizon John Hancock is expected to generate 6.02 times less return on investment than Calamos Convertible. But when comparing it to its historical volatility, John Hancock Tax is 1.05 times less risky than Calamos Convertible. It trades about 0.03 of its potential returns per unit of risk. Calamos Convertible Opportunities is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,160 in Calamos Convertible Opportunities on August 28, 2024 and sell it today you would earn a total of 48.00 from holding Calamos Convertible Opportunities or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Tax vs. Calamos Convertible Opportunit
Performance |
| Timeline |
| John Hancock Tax |
| Calamos Convertible |
John Hancock and Calamos Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Calamos Convertible
The main advantage of trading using opposite John Hancock and Calamos Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Calamos Convertible 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 Convertible will offset losses from the drop in Calamos Convertible's long position.| John Hancock vs. Allspring Income Opportunities | John Hancock vs. Allspring Global Dividend | John Hancock vs. Blackstone Gso Senior | John Hancock vs. John Hancock Preferred |
| Calamos Convertible vs. Calamos Global Dynamic | Calamos Convertible vs. Calamos Strategic Total | Calamos Convertible vs. Calamos LongShort Equity | Calamos Convertible vs. DTF Tax Free |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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