Correlation Between JPMorgan Chase and Calamos Strategic
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Calamos Strategic 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 Strategic 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 Strategic Total, you can compare the effects of market volatilities on JPMorgan Chase and Calamos Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Calamos Strategic.
Diversification Opportunities for JPMorgan Chase and Calamos Strategic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Calamos is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Calamos Strategic go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Calamos Strategic
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.37 times more return on investment than Calamos Strategic. However, JPMorgan Chase is 1.37 times more volatile than Calamos Strategic Total. It trades about 0.36 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about 0.14 per unit of risk. If you would invest 25,916 in JPMorgan Chase Co on November 18, 2024 and sell it today you would earn a total of 1,743 from holding JPMorgan Chase Co or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Calamos Strategic Total
Performance |
| Timeline |
| JPMorgan Chase |
| Calamos Strategic Total |
JPMorgan Chase and Calamos Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Calamos Strategic
The main advantage of trading using opposite JPMorgan Chase and Calamos Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Calamos Strategic 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 Strategic will offset losses from the drop in Calamos Strategic's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |