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
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and Calamos is 0.72. 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 Equity is expected to generate 1.01 times more return on investment than Calamos Hedged. However, Jpmorgan Hedged is 1.01 times more volatile than Calamos Hedged Equity. It trades about 0.13 of its potential returns per unit of risk. Calamos Hedged Equity is currently generating about 0.12 per unit of risk. If you would invest 1,426 in Jpmorgan Hedged Equity on November 27, 2024 and sell it today you would earn a total of 469.00 from holding Jpmorgan Hedged Equity or generate 32.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| 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. Ashmore Emerging Markets | Jpmorgan Hedged vs. Vulcan Value Partners | Jpmorgan Hedged vs. Goldman Sachs Small | Jpmorgan Hedged vs. Needham Small Cap |
| Calamos Hedged vs. Hartford Schroders Emerging | Calamos Hedged vs. Mondrian Emerging Markets | Calamos Hedged vs. Siit Emerging Markets | Calamos Hedged vs. Pimco Emerging Markets |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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