Correlation Between Jpmorgan Hedged and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged 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 Hedged 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 Hedged Equity and Calamos Market Neutral, you can compare the effects of market volatilities on Jpmorgan Hedged 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 Hedged with a short position of Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Calamos Market.
Diversification Opportunities for Jpmorgan Hedged and Calamos Market
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Calamos is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity 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 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 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 Hedged i.e., Jpmorgan Hedged and Calamos Market go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Calamos Market
Assuming the 90 days horizon Jpmorgan Hedged Equity is expected to generate 4.8 times more return on investment than Calamos Market. However, Jpmorgan Hedged is 4.8 times more volatile than Calamos Market Neutral. It trades about 0.19 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 1,928 in Jpmorgan Hedged Equity on August 28, 2024 and sell it today you would earn a total of 42.00 from holding Jpmorgan Hedged Equity or generate 2.18% 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 Market Neutral
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Calamos Market Neutral |
Jpmorgan Hedged and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Calamos Market
The main advantage of trading using opposite Jpmorgan Hedged and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged 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 Hedged vs. Fidelity Sai Emerging | Jpmorgan Hedged vs. Fidelity Sai International | Jpmorgan Hedged vs. Aa Pimco Tr | Jpmorgan Hedged vs. Fidelity Sai Minimum |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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