Correlation Between Calamos Dynamic and Jpmorgan Large

Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Jpmorgan Large 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 Dynamic and Jpmorgan Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calamos Dynamic Convertible and Jpmorgan Large Cap, you can compare the effects of market volatilities on Calamos Dynamic and Jpmorgan Large 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 Dynamic with a short position of Jpmorgan Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Jpmorgan Large.

Diversification Opportunities for Calamos Dynamic and Jpmorgan Large

-0.29

Correlation Coefficient

Calamos Dynamic  Jpmorgan Large

Very good diversification

The 3 months correlation between Calamos and Jpmorgan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Jpmorgan Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Large Cap and Calamos Dynamic 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 Dynamic Convertible are associated (or correlated) with Jpmorgan Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Large Cap has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Jpmorgan Large go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Jpmorgan Large

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to generate 0.73 times more return on investment than Jpmorgan Large. However, Calamos Dynamic Convertible is 1.37 times less risky than Jpmorgan Large. It trades about 0.22 of its potential returns per unit of risk. Jpmorgan Large Cap is currently generating about -0.04 per unit of risk. If you would invest  2,342  in Calamos Dynamic Convertible on October 6, 2024 and sell it today you would earn a total of  89.00  from holding Calamos Dynamic Convertible or generate 3.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  Jpmorgan Large Cap

Calamos Dynamic Conv

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Dynamic Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Jpmorgan Large Cap

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Large Cap are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Jpmorgan Large may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Calamos Dynamic and Jpmorgan Large

The main advantage of trading using opposite Calamos Dynamic and Jpmorgan Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Jpmorgan Large 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 Large will offset losses from the drop in Jpmorgan Large's long position.

The idea behind Calamos Dynamic Convertible and Jpmorgan Large Cap 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.