Correlation Between Calamos Strategic and John Hancock

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

Diversification Opportunities for Calamos Strategic and John Hancock

-0.24

Correlation Coefficient

Calamos Strategic  John Hancock

Very good diversification

The 3 months correlation between Calamos and John is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total 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 Strategic 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 Strategic Total 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 Strategic i.e., Calamos Strategic and John Hancock go up and down completely randomly.

Pair Corralation between Calamos Strategic and John Hancock

Considering the 90-day investment horizon Calamos Strategic Total is expected to under-perform the John Hancock. In addition to that, Calamos Strategic is 1.21 times more volatile than John Hancock Tax. It trades about -0.09 of its total potential returns per unit of risk. John Hancock Tax is currently generating about 0.15 per unit of volatility. If you would invest  2,168  in John Hancock Tax on December 27, 2024 and sell it today you would earn a total of  173.00  from holding John Hancock Tax or generate 7.98% return on investment over 90 days.

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

Calamos Strategic Total  vs.  John Hancock Tax

Calamos Strategic Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Strategic Total has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively invariable basic indicators, Calamos Strategic is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

John Hancock Tax

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Tax are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather inconsistent basic indicators, John Hancock may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Calamos Strategic and John Hancock

The main advantage of trading using opposite Calamos Strategic and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic 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 Strategic Total 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.