Correlation Between Calamos Opportunistic and Jpmorgan Equity
Can any of the company-specific risk be diversified away by investing in both Calamos Opportunistic and Jpmorgan Equity 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 Calamos Opportunistic and Jpmorgan Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Opportunistic Value and Jpmorgan Equity Fund, you can compare the effects of market volatilities on Calamos Opportunistic and Jpmorgan Equity 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 Calamos Opportunistic with a short position of Jpmorgan Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Opportunistic and Jpmorgan Equity.
Diversification Opportunities for Calamos Opportunistic and Jpmorgan Equity
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Calamos and Jpmorgan is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Opportunistic Value and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity and Calamos Opportunistic 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 Calamos Opportunistic Value are associated (or correlated) with Jpmorgan Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Equity has no effect on the direction of Calamos Opportunistic i.e., Calamos Opportunistic and Jpmorgan Equity go up and down completely randomly.
Pair Corralation between Calamos Opportunistic and Jpmorgan Equity
Assuming the 90 days horizon Calamos Opportunistic is expected to generate 1.02 times less return on investment than Jpmorgan Equity. But when comparing it to its historical volatility, Calamos Opportunistic Value is 1.02 times less risky than Jpmorgan Equity. It trades about 0.13 of its potential returns per unit of risk. Jpmorgan Equity Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,781 in Jpmorgan Equity Fund on January 20, 2024 and sell it today you would earn a total of 476.00 from holding Jpmorgan Equity Fund or generate 26.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Opportunistic Value vs. Jpmorgan Equity Fund
Performance |
| Timeline |
| Calamos Opportunistic |
| Jpmorgan Equity |
Calamos Opportunistic and Jpmorgan Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Opportunistic and Jpmorgan Equity
The main advantage of trading using opposite Calamos Opportunistic and Jpmorgan Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Opportunistic position performs unexpectedly, Jpmorgan Equity 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 Jpmorgan Equity will offset losses from the drop in Jpmorgan Equity's long position.| Calamos Opportunistic vs. Calamos Opportunistic Value | Calamos Opportunistic vs. Calamos Growth Fund | Calamos Opportunistic vs. Calamos Growth Fund | Calamos Opportunistic vs. Calamos Global Growth |
| Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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