Correlation Between JPMorgan Chase and Calamos Bitcoin

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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

JPMorganCalamosDiversified AwayJPMorganCalamosDiversified Away100%
0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between JPMorgan and Calamos is 0.65. 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 2.15 times more volatile than Calamos Bitcoin 90. It trades about -0.42 of its total potential returns per unit of risk. Calamos Bitcoin 90 is currently generating about -0.18 per unit of volatility. If you would invest  2,498  in Calamos Bitcoin 90 on December 15, 2024 and sell it today you would lose (84.00) from holding Calamos Bitcoin 90 or give up 3.36% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

JPMorgan Chase Co  vs.  Calamos Bitcoin 90

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.15JPM CBXJ
       Timeline  
JPMorgan Chase 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days JPMorgan Chase Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, JPMorgan Chase is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar230240250260270280
Calamos Bitcoin 90 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Calamos Bitcoin 90 has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Etf's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the ETF firm stakeholders.
JavaScript chart by amCharts 3.21.15Feb 04Feb 10Feb 14Feb 24Feb 28Mar 04Mar 10Feb 10Feb 14Feb 24Feb 28Mar 04Mar 10Mar 1423.82424.224.424.624.82525.2

JPMorgan Chase and Calamos Bitcoin Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.42-1.85-1.28-0.71-0.140.410.981.552.122.69 0.10.20.30.40.50.6
JavaScript chart by amCharts 3.21.15JPM CBXJ
       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.
The idea behind JPMorgan Chase Co and Calamos Bitcoin 90 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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