Correlation Between Jpmorgan Investor and Fa 529

Can any of the company-specific risk be diversified away by investing in both Jpmorgan Investor and Fa 529 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 Fa 529 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 Fa 529 Aggressive, you can compare the effects of market volatilities on Jpmorgan Investor and Fa 529 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 Fa 529. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Investor and Fa 529.

Diversification Opportunities for Jpmorgan Investor and Fa 529

0.92

Correlation Coefficient

Jpmorgan Investor  Fa 529

Almost no diversification

The 3 months correlation between Jpmorgan and FFCGX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Investor Growth and Fa 529 Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fa 529 Aggressive 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 Fa 529. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fa 529 Aggressive has no effect on the direction of Jpmorgan Investor i.e., Jpmorgan Investor and Fa 529 go up and down completely randomly.

Pair Corralation between Jpmorgan Investor and Fa 529

Assuming the 90 days horizon Jpmorgan Investor Growth is expected to under-perform the Fa 529. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Investor Growth is 1.27 times less risky than Fa 529. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Fa 529 Aggressive is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  4,006  in Fa 529 Aggressive on September 29, 2024 and sell it today you would lose (57.00) from holding Fa 529 Aggressive or give up 1.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Jpmorgan Investor Growth  vs.  Fa 529 Aggressive

Jpmorgan Investor Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

Fa 529 Aggressive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fa 529 Aggressive has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Fa 529 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 Fa 529

The main advantage of trading using opposite Jpmorgan Investor and Fa 529 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Investor position performs unexpectedly, Fa 529 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 Fa 529 will offset losses from the drop in Fa 529's long position.

The idea behind Jpmorgan Investor Growth and Fa 529 Aggressive 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.