Correlation Between Calamos Global and John Hancock

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

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

Diversification Opportunities for Calamos Global and John Hancock

0.29

Correlation Coefficient

Calamos Global  John Hancock

Modest diversification

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

Pair Corralation between Calamos Global and John Hancock

Considering the 90-day investment horizon Calamos Global Dynamic is expected to under-perform the John Hancock. In addition to that, Calamos Global is 1.26 times more volatile than John Hancock Premium. It trades about -0.03 of its total potential returns per unit of risk. John Hancock Premium is currently generating about 0.13 per unit of volatility. If you would invest  1,227  in John Hancock Premium on December 28, 2024 and sell it today you would earn a total of  65.00  from holding John Hancock Premium or generate 5.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Calamos Global Dynamic  vs.  John Hancock Premium

Calamos Global Dynamic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Global Dynamic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable technical indicators, Calamos Global is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

John Hancock Premium

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Premium are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, John Hancock is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Calamos Global and John Hancock

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

The idea behind Calamos Global Dynamic and John Hancock Premium 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..