Correlation Between Jpmorgan International and Jpmorgan

Can any of the company-specific risk be diversified away by investing in both Jpmorgan International and Jpmorgan 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 Jpmorgan 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 Jpmorgan Equity Fund, you can compare the effects of market volatilities on Jpmorgan International and Jpmorgan 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 Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan International and Jpmorgan.

Diversification Opportunities for Jpmorgan International and Jpmorgan

-0.49

Correlation Coefficient

Jpmorgan International  Jpmorgan

Very good diversification

The 3 months correlation between Jpmorgan and Jpmorgan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan International Value and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity 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 Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Equity has no effect on the direction of Jpmorgan International i.e., Jpmorgan International and Jpmorgan go up and down completely randomly.

Pair Corralation between Jpmorgan International and Jpmorgan

Assuming the 90 days horizon Jpmorgan International Value is expected to under-perform the Jpmorgan. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan International Value is 1.01 times less risky than Jpmorgan. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Jpmorgan Equity Fund is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,339  in Jpmorgan Equity Fund on September 3, 2024 and sell it today you would earn a total of  234.00  from holding Jpmorgan Equity Fund or generate 10.0% return on investment over 90 days.

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

Jpmorgan International Value  vs.  Jpmorgan Equity Fund

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.

Jpmorgan Equity

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Equity Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Jpmorgan may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jpmorgan International and Jpmorgan

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

The idea behind Jpmorgan International Value and Jpmorgan Equity 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.