Correlation Between Jp Morgan and Calamos International
Can any of the company-specific risk be diversified away by investing in both Jp Morgan and Calamos International 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 Jp Morgan and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jp Morgan Smartretirement and Calamos International Small, you can compare the effects of market volatilities on Jp Morgan and Calamos International 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 Jp Morgan with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jp Morgan and Calamos International.
Diversification Opportunities for Jp Morgan and Calamos International
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JTSQX and Calamos is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jp Morgan Smartretirement and Calamos International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Jp Morgan 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 Jp Morgan Smartretirement are associated (or correlated) with Calamos International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos International has no effect on the direction of Jp Morgan i.e., Jp Morgan and Calamos International go up and down completely randomly.
Pair Corralation between Jp Morgan and Calamos International
Assuming the 90 days horizon Jp Morgan Smartretirement is expected to generate 0.86 times more return on investment than Calamos International. However, Jp Morgan Smartretirement is 1.17 times less risky than Calamos International. It trades about 0.09 of its potential returns per unit of risk. Calamos International Small is currently generating about -0.1 per unit of risk. If you would invest 2,348 in Jp Morgan Smartretirement on August 29, 2024 and sell it today you would earn a total of 31.00 from holding Jp Morgan Smartretirement or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jp Morgan Smartretirement vs. Calamos International Small
Performance |
| Timeline |
| Jp Morgan Smartretirement |
| Calamos International |
Jp Morgan and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jp Morgan and Calamos International
The main advantage of trading using opposite Jp Morgan and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jp Morgan position performs unexpectedly, Calamos International 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 International will offset losses from the drop in Calamos International's long position.| Jp Morgan vs. Fidelity Freedom Index | Jp Morgan vs. HUMANA INC | Jp Morgan vs. Aquagold International | Jp Morgan vs. Barloworld Ltd ADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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