Correlation Between Jp Morgan and Oppenheimer International | JTSQX vs. OSMAX

Correlation Between Jp Morgan and Oppenheimer International

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Can any of the company-specific risk be diversified away by investing in both Jp Morgan and Oppenheimer International 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 Jp Morgan and Oppenheimer International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jp Morgan Smartretirement and Oppenheimer International Small, you can compare the effects of market volatilities on Jp Morgan and Oppenheimer International 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 Jp Morgan with a short position of Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jp Morgan and Oppenheimer International.

Diversification Opportunities for Jp Morgan and Oppenheimer International

JTSQXOppenheimerDiversified AwayJTSQXOppenheimerDiversified Away100%
-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between JTSQX and Oppenheimer is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jp Morgan Smartretirement and Oppenheimer International Smal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International and Jp Morgan 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 Jp Morgan Smartretirement are associated (or correlated) with Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Jp Morgan i.e., Jp Morgan and Oppenheimer International go up and down completely randomly.

Pair Corralation between Jp Morgan and Oppenheimer International

Assuming the 90 days horizon Jp Morgan Smartretirement is expected to generate 0.16 times more return on investment than Oppenheimer International. However, Jp Morgan Smartretirement is 6.17 times less risky than Oppenheimer International. It trades about 0.11 of its potential returns per unit of risk. Oppenheimer International Small is currently generating about -0.17 per unit of risk. If you would invest  2,342  in Jp Morgan Smartretirement on September 18, 2024 and sell it today you would earn a total of  21.00  from holding Jp Morgan Smartretirement or generate 0.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Jp Morgan Smartretirement  vs.  Oppenheimer International Smal

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-505
JavaScript chart by amCharts 3.21.15JTSQX OSMAX
       Timeline  
Jp Morgan Smartretirement 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jp Morgan Smartretirement are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jp Morgan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec23.223.423.623.82424.2
Oppenheimer International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oppenheimer International Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec383940414243444546

Jp Morgan and Oppenheimer International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.76-1.3-0.84-0.380.02340.450.911.371.832.29 0.20.40.60.81.01.2
JavaScript chart by amCharts 3.21.15JTSQX OSMAX
       Returns  

Pair Trading with Jp Morgan and Oppenheimer International

The main advantage of trading using opposite Jp Morgan and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jp Morgan position performs unexpectedly, Oppenheimer International 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.
The idea behind Jp Morgan Smartretirement and Oppenheimer International Small 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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