Correlation Between JPMorgan Chase and Calamos Alternative
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Calamos Alternative 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 Chase and Calamos Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and Calamos Alternative Nasdaq, you can compare the effects of market volatilities on JPMorgan Chase and Calamos Alternative 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 Chase with a short position of Calamos Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Calamos Alternative.
Diversification Opportunities for JPMorgan Chase and Calamos Alternative
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Calamos is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Calamos Alternative Nasdaq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Alternative and JPMorgan Chase 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 Chase Co are associated (or correlated) with Calamos Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Alternative has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Calamos Alternative go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Calamos Alternative
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 2.14 times less return on investment than Calamos Alternative. In addition to that, JPMorgan Chase is 1.14 times more volatile than Calamos Alternative Nasdaq. It trades about 0.1 of its total potential returns per unit of risk. Calamos Alternative Nasdaq is currently generating about 0.24 per unit of volatility. If you would invest 2,763 in Calamos Alternative Nasdaq on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Calamos Alternative Nasdaq or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Calamos Alternative Nasdaq
Performance |
| Timeline |
| JPMorgan Chase |
| Calamos Alternative |
JPMorgan Chase and Calamos Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Calamos Alternative
The main advantage of trading using opposite JPMorgan Chase and Calamos Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Calamos Alternative 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 Alternative will offset losses from the drop in Calamos Alternative's long position.| JPMorgan Chase vs. Bank of America | JPMorgan Chase vs. Victory Integrity Smallmid Cap | JPMorgan Chase vs. Hilton Worldwide Holdings | JPMorgan Chase vs. NVIDIA |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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