Correlation Between JPMorgan Active and Calamos ETF

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

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

Diversification Opportunities for JPMorgan Active and Calamos ETF

0.93

Correlation Coefficient

JPMorgan Active  Calamos ETF

Almost no diversification

The 3 months correlation between JPMorgan and Calamos is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Active Value and Calamos ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos ETF Trust and JPMorgan Active 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 JPMorgan Active Value are associated (or correlated) with Calamos ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos ETF Trust has no effect on the direction of JPMorgan Active i.e., JPMorgan Active and Calamos ETF go up and down completely randomly.

Pair Corralation between JPMorgan Active and Calamos ETF

Given the investment horizon of 90 days JPMorgan Active Value is expected to generate 3.08 times more return on investment than Calamos ETF. However, JPMorgan Active is 3.08 times more volatile than Calamos ETF Trust. It trades about 0.0 of its potential returns per unit of risk. Calamos ETF Trust is currently generating about -0.04 per unit of risk. If you would invest  6,303  in JPMorgan Active Value on December 30, 2024 and sell it today you would lose (2.00) from holding JPMorgan Active Value or give up 0.03% of portfolio value over 90 days.

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

JPMorgan Active Value  vs.  Calamos ETF Trust

JPMorgan Active Value

Risk-Adjusted Performance

Very Weak

Over the last 90 days JPMorgan Active Value has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, JPMorgan Active is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Calamos ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Calamos ETF is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JPMorgan Active and Calamos ETF

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

The idea behind JPMorgan Active Value and Calamos ETF Trust 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.