Correlation Between Siit Global and Jpmorgan Investor

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

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

Diversification Opportunities for Siit Global and Jpmorgan Investor

0.89

Correlation Coefficient

Siit Global  Jpmorgan Investor

Very poor diversification

The 3 months correlation between Siit and Jpmorgan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Jpmorgan Investor Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Investor and Siit Global 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 Siit Global Managed are associated (or correlated) with Jpmorgan Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Investor has no effect on the direction of Siit Global i.e., Siit Global and Jpmorgan Investor go up and down completely randomly.

Pair Corralation between Siit Global and Jpmorgan Investor

Assuming the 90 days horizon Siit Global Managed is expected to under-perform the Jpmorgan Investor. In addition to that, Siit Global is 2.49 times more volatile than Jpmorgan Investor Balanced. It trades about -0.11 of its total potential returns per unit of risk. Jpmorgan Investor Balanced is currently generating about -0.09 per unit of volatility. If you would invest  1,661  in Jpmorgan Investor Balanced on September 26, 2024 and sell it today you would lose (49.00) from holding Jpmorgan Investor Balanced or give up 2.95% of portfolio value over 90 days.

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

Siit Global Managed  vs.  Jpmorgan Investor Balanced

Siit Global Managed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siit Global Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Jpmorgan Investor

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Siit Global and Jpmorgan Investor

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

The idea behind Siit Global Managed and Jpmorgan Investor Balanced 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.