Correlation Between Jennison Natural and Calamos Longshort
Can any of the company-specific risk be diversified away by investing in both Jennison Natural and Calamos Longshort 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 Jennison Natural and Calamos Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jennison Natural Resources and Calamos Longshort Fund, you can compare the effects of market volatilities on Jennison Natural and Calamos Longshort 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 Jennison Natural with a short position of Calamos Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jennison Natural and Calamos Longshort.
Diversification Opportunities for Jennison Natural and Calamos Longshort
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jennison and Calamos is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jennison Natural Resources and Calamos Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Longshort and Jennison Natural 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 Jennison Natural Resources are associated (or correlated) with Calamos Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Longshort has no effect on the direction of Jennison Natural i.e., Jennison Natural and Calamos Longshort go up and down completely randomly.
Pair Corralation between Jennison Natural and Calamos Longshort
Assuming the 90 days horizon Jennison Natural Resources is expected to generate 1.41 times more return on investment than Calamos Longshort. However, Jennison Natural is 1.41 times more volatile than Calamos Longshort Fund. It trades about 0.06 of its potential returns per unit of risk. Calamos Longshort Fund is currently generating about 0.02 per unit of risk. If you would invest 3,978 in Jennison Natural Resources on September 12, 2024 and sell it today you would earn a total of 135.00 from holding Jennison Natural Resources or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Jennison Natural Resources vs. Calamos Longshort Fund
Performance |
| Timeline |
| Jennison Natural Res |
| Calamos Longshort |
Jennison Natural and Calamos Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jennison Natural and Calamos Longshort
The main advantage of trading using opposite Jennison Natural and Calamos Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jennison Natural position performs unexpectedly, Calamos Longshort 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 Longshort will offset losses from the drop in Calamos Longshort's long position.| Jennison Natural vs. Vanguard Materials Index | Jennison Natural vs. T Rowe Price | Jennison Natural vs. Gmo Trust | Jennison Natural vs. Gmo Resources |
| Calamos Longshort vs. Smallcap Growth Fund | Calamos Longshort vs. T Rowe Price | Calamos Longshort vs. L Abbett Growth | Calamos Longshort vs. Qs Moderate Growth |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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