Correlation Between Jpmorgan International and Stone Harbor

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

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

Diversification Opportunities for Jpmorgan International and Stone Harbor

0.63

Correlation Coefficient

Jpmorgan International  Stone Harbor

Poor diversification

The 3 months correlation between Jpmorgan and Stone is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan International Value and Stone Harbor High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor High and Jpmorgan 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 Jpmorgan International Value are associated (or correlated) with Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor High has no effect on the direction of Jpmorgan International i.e., Jpmorgan International and Stone Harbor go up and down completely randomly.

Pair Corralation between Jpmorgan International and Stone Harbor

If you would invest  676.00  in Stone Harbor High on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Stone Harbor High or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Jpmorgan International Value  vs.  Stone Harbor High

Jpmorgan International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Stone Harbor High

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jpmorgan International and Stone Harbor

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

The idea behind Jpmorgan International Value and Stone Harbor High 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.