Correlation Between Jennison Natural and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Jennison Natural and Calamos Opportunistic 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 Opportunistic 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 Opportunistic Value, you can compare the effects of market volatilities on Jennison Natural and Calamos Opportunistic 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 Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jennison Natural and Calamos Opportunistic.
Diversification Opportunities for Jennison Natural and Calamos Opportunistic
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jennison and Calamos is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jennison Natural Resources and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic 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 Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Jennison Natural i.e., Jennison Natural and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Jennison Natural and Calamos Opportunistic
Assuming the 90 days horizon Jennison Natural Resources is expected to under-perform the Calamos Opportunistic. In addition to that, Jennison Natural is 1.44 times more volatile than Calamos Opportunistic Value. It trades about -0.24 of its total potential returns per unit of risk. Calamos Opportunistic Value is currently generating about -0.22 per unit of volatility. If you would invest 2,301 in Calamos Opportunistic Value on December 6, 2024 and sell it today you would lose (116.00) from holding Calamos Opportunistic Value or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jennison Natural Resources vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Jennison Natural Res |
| Calamos Opportunistic |
Jennison Natural and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jennison Natural and Calamos Opportunistic
The main advantage of trading using opposite Jennison Natural and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jennison Natural position performs unexpectedly, Calamos Opportunistic 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 Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.| Jennison Natural vs. Federated Hermes Conservative | Jennison Natural vs. Stone Ridge Diversified | Jennison Natural vs. Mfs Diversified Income | Jennison Natural vs. Massmutual Premier Diversified |
| Calamos Opportunistic vs. Nexpoint Real Estate | Calamos Opportunistic vs. Real Estate Securities | Calamos Opportunistic vs. Nexpoint Real Estate | Calamos Opportunistic vs. Global Real Estate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |