Correlation Between Calamos Phineus and Jennison Natural

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

By analyzing existing cross correlation between Calamos Phineus Longshort and Jennison Natural Resources, you can compare the effects of market volatilities on Calamos Phineus and Jennison Natural 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 Phineus with a short position of Jennison Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Phineus and Jennison Natural.

Diversification Opportunities for Calamos Phineus and Jennison Natural

0.5

Correlation Coefficient

Calamos Phineus  Jennison Natural

Very weak diversification

The 3 months correlation between Calamos and Jennison is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Phineus Longshort and Jennison Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jennison Natural Res and Calamos Phineus 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 Phineus Longshort are associated (or correlated) with Jennison Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jennison Natural Res has no effect on the direction of Calamos Phineus i.e., Calamos Phineus and Jennison Natural go up and down completely randomly.

Pair Corralation between Calamos Phineus and Jennison Natural

Assuming the 90 days horizon Calamos Phineus is expected to generate 23.44 times less return on investment than Jennison Natural. But when comparing it to its historical volatility, Calamos Phineus Longshort is 3.17 times less risky than Jennison Natural. It trades about 0.02 of its potential returns per unit of risk. Jennison Natural Resources is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,135  in Jennison Natural Resources on September 5, 2024 and sell it today you would earn a total of  129.00  from holding Jennison Natural Resources or generate 3.12% return on investment over 90 days.

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

Calamos Phineus Longshort  vs.  Jennison Natural Resources

Calamos Phineus Longshort

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Phineus Longshort are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Calamos Phineus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jennison Natural Res

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jennison Natural Resources are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Jennison Natural may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Calamos Phineus and Jennison Natural

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

The idea behind Calamos Phineus Longshort and Jennison Natural Resources 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 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.