Correlation Between Jpmorgan Short and Jpmorgan Equity
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Short and Jpmorgan Equity 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 Short and Jpmorgan Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Short Intermediate Municipal and Jpmorgan Equity Fund, you can compare the effects of market volatilities on Jpmorgan Short and Jpmorgan Equity 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 Short with a short position of Jpmorgan Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Short and Jpmorgan Equity.
Diversification Opportunities for Jpmorgan Short and Jpmorgan Equity
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Jpmorgan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Short Intermediate Mu 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 Short 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 Short Intermediate Municipal are associated (or correlated) with Jpmorgan Equity. 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 Short i.e., Jpmorgan Short and Jpmorgan Equity go up and down completely randomly.
Pair Corralation between Jpmorgan Short and Jpmorgan Equity
Assuming the 90 days horizon Jpmorgan Short Intermediate Municipal is expected to under-perform the Jpmorgan Equity. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Short Intermediate Municipal is 6.53 times less risky than Jpmorgan Equity. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Jpmorgan Equity Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,529 in Jpmorgan Equity Fund on September 14, 2024 and sell it today you would earn a total of 202.00 from holding Jpmorgan Equity Fund or generate 7.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jpmorgan Short Intermediate Mu vs. Jpmorgan Equity Fund
Performance |
Timeline |
Jpmorgan Short Inter |
Jpmorgan Equity |
Jpmorgan Short and Jpmorgan Equity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jpmorgan Short and Jpmorgan Equity
The main advantage of trading using opposite Jpmorgan Short and Jpmorgan Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Short position performs unexpectedly, Jpmorgan Equity 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 Equity will offset losses from the drop in Jpmorgan Equity's long position.Jpmorgan Short vs. Ashmore Emerging Markets | Jpmorgan Short vs. Pnc Emerging Markets | Jpmorgan Short vs. Calvert Developed Market | Jpmorgan Short vs. Investec Emerging Markets |
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Check out your portfolio center.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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