Correlation Between Prudential Jennison and Calamos International
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison 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 Prudential Jennison and Calamos International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Financial and Calamos International Growth, you can compare the effects of market volatilities on Prudential Jennison 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 Prudential Jennison with a short position of Calamos International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Calamos International.
Diversification Opportunities for Prudential Jennison and Calamos International
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Prudential and Calamos is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Financial and Calamos International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos International and Prudential Jennison 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 Prudential Jennison Financial 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 Prudential Jennison i.e., Prudential Jennison and Calamos International go up and down completely randomly.
Pair Corralation between Prudential Jennison and Calamos International
Assuming the 90 days horizon Prudential Jennison Financial is expected to generate 0.94 times more return on investment than Calamos International. However, Prudential Jennison Financial is 1.06 times less risky than Calamos International. It trades about 0.14 of its potential returns per unit of risk. Calamos International Growth is currently generating about 0.07 per unit of risk. If you would invest 1,935 in Prudential Jennison Financial on September 14, 2024 and sell it today you would earn a total of 728.00 from holding Prudential Jennison Financial or generate 37.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Financial vs. Calamos International Growth
Performance |
| Timeline |
| Prudential Jennison |
| Calamos International |
Prudential Jennison and Calamos International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Calamos International
The main advantage of trading using opposite Prudential Jennison and Calamos International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison 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.| Prudential Jennison vs. Angel Oak Ultrashort | Prudential Jennison vs. Rbc Short Duration | Prudential Jennison vs. Lord Abbett Short | Prudential Jennison vs. Virtus Multi Sector Short |
| Calamos International vs. Lord Abbett Small | Calamos International vs. Victory Rs Partners | Calamos International vs. Palm Valley Capital | Calamos International vs. Valic Company I |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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