Correlation Between JPMorgan Chase and Calamos Bitcoin
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Calamos Bitcoin 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 Bitcoin 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 Bitcoin 90, you can compare the effects of market volatilities on JPMorgan Chase and Calamos Bitcoin 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 Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Calamos Bitcoin.
Diversification Opportunities for JPMorgan Chase and Calamos Bitcoin
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Calamos is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Calamos Bitcoin 90 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Bitcoin 90 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 Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Bitcoin 90 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Calamos Bitcoin go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Calamos Bitcoin
Considering the 90-day investment horizon JPMorgan Chase Co is expected to under-perform the Calamos Bitcoin. In addition to that, JPMorgan Chase is 2.13 times more volatile than Calamos Bitcoin 90. It trades about -0.48 of its total potential returns per unit of risk. Calamos Bitcoin 90 is currently generating about -0.13 per unit of volatility. If you would invest 2,474 in Calamos Bitcoin 90 on December 17, 2024 and sell it today you would lose (60.00) from holding Calamos Bitcoin 90 or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Calamos Bitcoin 90
Performance |
| Timeline |
| JPMorgan Chase |
| Calamos Bitcoin 90 |
JPMorgan Chase and Calamos Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Calamos Bitcoin
The main advantage of trading using opposite JPMorgan Chase and Calamos Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Calamos Bitcoin 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 Bitcoin will offset losses from the drop in Calamos Bitcoin's long position.| JPMorgan Chase vs. Citigroup | ||
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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