Correlation Between Jpmorgan Investor and Amg Managers

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

By analyzing existing cross correlation between Jpmorgan Investor Growth and Amg Managers Montag, you can compare the effects of market volatilities on Jpmorgan Investor and Amg Managers 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 Investor with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Investor and Amg Managers.

Diversification Opportunities for Jpmorgan Investor and Amg Managers

0.9

Correlation Coefficient

Jpmorgan Investor  Amg Managers

Almost no diversification

The 3 months correlation between Jpmorgan and Amg is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Investor Growth and Amg Managers Montag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Montag and Jpmorgan Investor 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 Investor Growth are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Montag has no effect on the direction of Jpmorgan Investor i.e., Jpmorgan Investor and Amg Managers go up and down completely randomly.

Pair Corralation between Jpmorgan Investor and Amg Managers

Assuming the 90 days horizon Jpmorgan Investor is expected to generate 2.31 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Jpmorgan Investor Growth is 1.89 times less risky than Amg Managers. It trades about 0.09 of its potential returns per unit of risk. Amg Managers Montag is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,355  in Amg Managers Montag on September 15, 2024 and sell it today you would earn a total of  82.00  from holding Amg Managers Montag or generate 6.05% return on investment over 90 days.

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

Jpmorgan Investor Growth  vs.  Amg Managers Montag

Jpmorgan Investor Growth

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Investor Growth are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Jpmorgan Investor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Managers Montag

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amg Managers Montag are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Amg Managers 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 Investor and Amg Managers

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

The idea behind Jpmorgan Investor Growth and Amg Managers Montag 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.