Correlation Between CM AM and JPMIF Bond
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By analyzing existing cross correlation between CM AM Monplus NE and JPMIF Bond Fund, you can compare the effects of market volatilities on CM AM and JPMIF Bond 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 CM AM with a short position of JPMIF Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and JPMIF Bond.
Diversification Opportunities for CM AM and JPMIF Bond
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P0001F96C and JPMIF is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and JPMIF Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMIF Bond Fund and CM AM 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 CM AM Monplus NE are associated (or correlated) with JPMIF Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMIF Bond Fund has no effect on the direction of CM AM i.e., CM AM and JPMIF Bond go up and down completely randomly.
Pair Corralation between CM AM and JPMIF Bond
Assuming the 90 days trading horizon CM AM is expected to generate 1.89 times less return on investment than JPMIF Bond. But when comparing it to its historical volatility, CM AM Monplus NE is 42.96 times less risky than JPMIF Bond. It trades about 1.5 of its potential returns per unit of risk. JPMIF Bond Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 21,535 in JPMIF Bond Fund on October 24, 2024 and sell it today you would earn a total of 1,434 from holding JPMIF Bond Fund or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 59.34% |
| Values | Daily Returns |
CM AM Monplus NE vs. JPMIF Bond Fund
Performance |
| Timeline |
| CM AM Monplus |
| JPMIF Bond Fund |
CM AM and JPMIF Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM AM and JPMIF Bond
The main advantage of trading using opposite CM AM and JPMIF Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, JPMIF Bond 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 JPMIF Bond will offset losses from the drop in JPMIF Bond's long position.| CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. DWS Aktien Strategie |
| JPMIF Bond vs. Groupama Entreprises N | JPMIF Bond vs. Renaissance Europe C | JPMIF Bond vs. Superior Plus Corp | JPMIF Bond vs. Origin Agritech |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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