Correlation Between Calamos International and Jpmorgan Diversified

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

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

Diversification Opportunities for Calamos International and Jpmorgan Diversified

0.4

Correlation Coefficient

Calamos International  Jpmorgan Diversified

Very weak diversification

The 3 months correlation between Calamos and Jpmorgan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Calamos International Small and Jpmorgan Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Diversified and Calamos International 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 International Small are associated (or correlated) with Jpmorgan Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Diversified has no effect on the direction of Calamos International i.e., Calamos International and Jpmorgan Diversified go up and down completely randomly.

Pair Corralation between Calamos International and Jpmorgan Diversified

Assuming the 90 days horizon Calamos International Small is expected to under-perform the Jpmorgan Diversified. In addition to that, Calamos International is 1.7 times more volatile than Jpmorgan Diversified Fund. It trades about -0.03 of its total potential returns per unit of risk. Jpmorgan Diversified Fund is currently generating about 0.01 per unit of volatility. If you would invest  1,556  in Jpmorgan Diversified Fund on December 30, 2024 and sell it today you would earn a total of  2.00  from holding Jpmorgan Diversified Fund or generate 0.13% return on investment over 90 days.

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

Calamos International Small  vs.  Jpmorgan Diversified Fund

Calamos International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos International Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Calamos International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Diversified

Risk-Adjusted Performance

Weak

Over the last 90 days Jpmorgan Diversified Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jpmorgan Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calamos International and Jpmorgan Diversified

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

The idea behind Calamos International Small and Jpmorgan Diversified Fund 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.