Correlation Between Jpmorgan Smartretirement and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Smartretirement and Calamos Dynamic 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 Smartretirement and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Smartretirement Blend and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Jpmorgan Smartretirement and Calamos Dynamic 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 Smartretirement with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement and Calamos Dynamic.
Diversification Opportunities for Jpmorgan Smartretirement and Calamos Dynamic
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jpmorgan and Calamos is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement Blend and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Jpmorgan Smartretirement 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 Smartretirement Blend are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Jpmorgan Smartretirement and Calamos Dynamic
Assuming the 90 days horizon Jpmorgan Smartretirement Blend is expected to generate 0.44 times more return on investment than Calamos Dynamic. However, Jpmorgan Smartretirement Blend is 2.29 times less risky than Calamos Dynamic. It trades about 0.21 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.15 per unit of risk. If you would invest 3,416 in Jpmorgan Smartretirement Blend on September 13, 2024 and sell it today you would earn a total of 61.00 from holding Jpmorgan Smartretirement Blend or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jpmorgan Smartretirement Blend vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Jpmorgan Smartretirement |
| Calamos Dynamic Conv |
Jpmorgan Smartretirement and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Smartretirement and Calamos Dynamic
The main advantage of trading using opposite Jpmorgan Smartretirement and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Smartretirement position performs unexpectedly, Calamos Dynamic 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 Dynamic will offset losses from the drop in Calamos Dynamic's long position.The idea behind Jpmorgan Smartretirement Blend and Calamos Dynamic Convertible 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.
| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |