Correlation Between John Hancock and Calamos Global

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

By analyzing existing cross correlation between John Hancock Tax and Calamos Global Total, you can compare the effects of market volatilities on John Hancock and Calamos Global 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 John Hancock with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Calamos Global.

Diversification Opportunities for John Hancock and Calamos Global

0.56

Correlation Coefficient

John Hancock  Calamos Global

Very weak diversification

The 3 months correlation between John and Calamos is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax and Calamos Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Total and John Hancock 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 John Hancock Tax are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Total has no effect on the direction of John Hancock i.e., John Hancock and Calamos Global go up and down completely randomly.

Pair Corralation between John Hancock and Calamos Global

Considering the 90-day investment horizon John Hancock Tax is expected to generate 0.84 times more return on investment than Calamos Global. However, John Hancock Tax is 1.19 times less risky than Calamos Global. It trades about -0.07 of its potential returns per unit of risk. Calamos Global Total is currently generating about -0.08 per unit of risk. If you would invest  2,295  in John Hancock Tax on October 15, 2024 and sell it today you would lose (98.00) from holding John Hancock Tax or give up 4.27% of portfolio value over 90 days.

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

John Hancock Tax  vs.  Calamos Global Total

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.

Calamos Global Total

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calamos Global Total has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy technical and fundamental indicators, Calamos Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with John Hancock and Calamos Global

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

The idea behind John Hancock Tax and Calamos Global Total 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.