Correlation Between Johnson Johnson and Calamos High
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and Calamos High 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 Johnson Johnson and Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and Calamos High Income, you can compare the effects of market volatilities on Johnson Johnson and Calamos High 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 Johnson Johnson with a short position of Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and Calamos High.
Diversification Opportunities for Johnson Johnson and Calamos High
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Johnson and Calamos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income and Johnson Johnson 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 Johnson Johnson are associated (or correlated) with Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and Calamos High go up and down completely randomly.
Pair Corralation between Johnson Johnson and Calamos High
Considering the 90-day investment horizon Johnson Johnson is expected to generate 2.17 times less return on investment than Calamos High. In addition to that, Johnson Johnson is 4.92 times more volatile than Calamos High Income. It trades about 0.02 of its total potential returns per unit of risk. Calamos High Income is currently generating about 0.18 per unit of volatility. If you would invest 657.00 in Calamos High Income on November 27, 2024 and sell it today you would earn a total of 127.00 from holding Calamos High Income or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Johnson vs. Calamos High Income
Performance |
| Timeline |
| Johnson Johnson |
| Calamos High Income |
Johnson Johnson and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and Calamos High
The main advantage of trading using opposite Johnson Johnson and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, Calamos High 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 High will offset losses from the drop in Calamos High's long position.| Johnson Johnson vs. Merck Company | Johnson Johnson vs. Bristol Myers Squibb | Johnson Johnson vs. Amgen Inc | Johnson Johnson vs. Pfizer Inc |
| Calamos High vs. Barings Active Short | Calamos High vs. T Rowe Price | Calamos High vs. Ms Global Fixed | Calamos High vs. Ultra Short Fixed Income |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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