Correlation Between Calamos ETF and JPMorgan Fundamental

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

By analyzing existing cross correlation between Calamos ETF Trust and JPMorgan Fundamental Data, you can compare the effects of market volatilities on Calamos ETF and JPMorgan Fundamental 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 ETF with a short position of JPMorgan Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos ETF and JPMorgan Fundamental.

Diversification Opportunities for Calamos ETF and JPMorgan Fundamental

0.85

Correlation Coefficient

Calamos ETF  JPMorgan Fundamental

Very poor diversification

The 3 months correlation between Calamos and JPMorgan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calamos ETF Trust and JPMorgan Fundamental Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Fundamental Data and Calamos ETF 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 ETF Trust are associated (or correlated) with JPMorgan Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Fundamental Data has no effect on the direction of Calamos ETF i.e., Calamos ETF and JPMorgan Fundamental go up and down completely randomly.

Pair Corralation between Calamos ETF and JPMorgan Fundamental

Given the investment horizon of 90 days Calamos ETF is expected to generate 3.01 times less return on investment than JPMorgan Fundamental. But when comparing it to its historical volatility, Calamos ETF Trust is 2.72 times less risky than JPMorgan Fundamental. It trades about 0.13 of its potential returns per unit of risk. JPMorgan Fundamental Data is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  4,992  in JPMorgan Fundamental Data on October 11, 2024 and sell it today you would earn a total of  606.00  from holding JPMorgan Fundamental Data or generate 12.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	79.85%
Values	Daily Returns

Calamos ETF Trust  vs.  JPMorgan Fundamental Data

Calamos ETF Trust

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos ETF Trust are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, Calamos ETF is not utilizing all of its potentials. The newest stock price chaos, may contribute to medium-term losses for the stakeholders.

JPMorgan Fundamental Data

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JPMorgan Fundamental Data has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, JPMorgan Fundamental 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 ETF and JPMorgan Fundamental

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

The idea behind Calamos ETF Trust and JPMorgan Fundamental Data 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.