Correlation Between Jpmorgan Short-intermedia and Calamos Short-term
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Short-intermedia and Calamos Short-term 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 Short-intermedia and Calamos Short-term into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Short Intermediate Municipal and Calamos Short Term Bond, you can compare the effects of market volatilities on Jpmorgan Short-intermedia and Calamos Short-term 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 Short-intermedia with a short position of Calamos Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Short-intermedia and Calamos Short-term.
Diversification Opportunities for Jpmorgan Short-intermedia and Calamos Short-term
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMORGAN and Calamos is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Short Intermediate Mu and Calamos Short Term Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Short Term and Jpmorgan Short-intermedia 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 Short Intermediate Municipal are associated (or correlated) with Calamos Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Short Term has no effect on the direction of Jpmorgan Short-intermedia i.e., Jpmorgan Short-intermedia and Calamos Short-term go up and down completely randomly.
Pair Corralation between Jpmorgan Short-intermedia and Calamos Short-term
Assuming the 90 days horizon Jpmorgan Short-intermedia is expected to generate 1.79 times less return on investment than Calamos Short-term. But when comparing it to its historical volatility, Jpmorgan Short Intermediate Municipal is 1.17 times less risky than Calamos Short-term. It trades about 0.11 of its potential returns per unit of risk. Calamos Short Term Bond is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 948.00 in Calamos Short Term Bond on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Calamos Short Term Bond or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Short Intermediate Mu vs. Calamos Short Term Bond
Performance |
| Timeline |
| Jpmorgan Short-intermedia |
| Calamos Short Term |
Jpmorgan Short-intermedia and Calamos Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Short-intermedia and Calamos Short-term
The main advantage of trading using opposite Jpmorgan Short-intermedia and Calamos Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Short-intermedia position performs unexpectedly, Calamos Short-term 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 Short-term will offset losses from the drop in Calamos Short-term's long position.The idea behind Jpmorgan Short Intermediate Municipal and Calamos Short Term Bond 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 Short-term vs. Us Government Securities | Calamos Short-term vs. Fidelity Series Government | Calamos Short-term vs. Us Government Securities | Calamos Short-term vs. Franklin Adjustable Government |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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