Correlation Between Jpmorgan Hedged and Calamos Hedged
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged and Calamos Hedged 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 Hedged and Calamos Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Hedged Equity and Calamos Hedged Equity, you can compare the effects of market volatilities on Jpmorgan Hedged and Calamos Hedged 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 Hedged with a short position of Calamos Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Calamos Hedged.
Diversification Opportunities for Jpmorgan Hedged and Calamos Hedged
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Jpmorgan and Calamos is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Calamos Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Hedged Equity and Jpmorgan Hedged 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 Hedged Equity are associated (or correlated) with Calamos Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Hedged Equity has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Calamos Hedged go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Calamos Hedged
Assuming the 90 days horizon Jpmorgan Hedged is expected to generate 1.49 times less return on investment than Calamos Hedged. In addition to that, Jpmorgan Hedged is 1.12 times more volatile than Calamos Hedged Equity. It trades about 0.09 of its total potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.15 per unit of volatility. If you would invest 1,720 in Calamos Hedged Equity on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Calamos Hedged Equity or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Hedged Equity vs. Calamos Hedged Equity
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Calamos Hedged Equity |
Jpmorgan Hedged and Calamos Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Calamos Hedged
The main advantage of trading using opposite Jpmorgan Hedged and Calamos Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged position performs unexpectedly, Calamos Hedged 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 Hedged will offset losses from the drop in Calamos Hedged's long position.| Jpmorgan Hedged vs. Vanguard Strategic Small Cap | Jpmorgan Hedged vs. Small Cap Stock | Jpmorgan Hedged vs. Tiaa Cref Smallmid Cap Equity | Jpmorgan Hedged vs. American Century Diversified |
| Calamos Hedged vs. American Beacon Soundpointfltrtinc | Calamos Hedged vs. Calamos Hedged Equity | Calamos Hedged vs. Calamos Market Neutral | Calamos Hedged vs. Aqr Long Short Equity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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