Correlation Between Calamos LongShort and John Hancock

Can any of the company-specific risk be diversified away by investing in both Calamos LongShort 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 LongShort 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 LongShort Equity and John Hancock Tax, you can compare the effects of market volatilities on Calamos LongShort 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 LongShort with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos LongShort and John Hancock.

Diversification Opportunities for Calamos LongShort and John Hancock

0.58

Correlation Coefficient

Calamos LongShort  John Hancock

Very weak diversification

The 3 months correlation between Calamos and John is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Calamos LongShort Equity and John Hancock Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and Calamos LongShort 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 LongShort Equity 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 Tax has no effect on the direction of Calamos LongShort i.e., Calamos LongShort and John Hancock go up and down completely randomly.

Pair Corralation between Calamos LongShort and John Hancock

Considering the 90-day investment horizon Calamos LongShort Equity is expected to generate 0.79 times more return on investment than John Hancock. However, Calamos LongShort Equity is 1.26 times less risky than John Hancock. It trades about -0.03 of its potential returns per unit of risk. John Hancock Tax is currently generating about -0.06 per unit of risk. If you would invest  1,527  in Calamos LongShort Equity on September 28, 2024 and sell it today you would lose (21.00) from holding Calamos LongShort Equity or give up 1.38% of portfolio value over 90 days.

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

Calamos LongShort Equity  vs.  John Hancock Tax

Calamos LongShort Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos LongShort Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Calamos LongShort is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

John Hancock Tax

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Calamos LongShort and John Hancock

The main advantage of trading using opposite Calamos LongShort and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos LongShort 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 LongShort Equity and John Hancock Tax 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 Stocks Directory module to find actively traded stocks across global markets.