Correlation Between Amg Managers and Jpmorgan
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Jpmorgan 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 Amg Managers and Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Fairpointe and Jpmorgan Equity Fund, you can compare the effects of market volatilities on Amg Managers and Jpmorgan 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 Amg Managers with a short position of Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Jpmorgan.
Diversification Opportunities for Amg Managers and Jpmorgan
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Jpmorgan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Fairpointe and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity and Amg Managers 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 Amg Managers Fairpointe are associated (or correlated) with Jpmorgan. 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 Amg Managers i.e., Amg Managers and Jpmorgan go up and down completely randomly.
Pair Corralation between Amg Managers and Jpmorgan
Assuming the 90 days horizon Amg Managers Fairpointe is expected to generate 1.16 times more return on investment than Jpmorgan. However, Amg Managers is 1.16 times more volatile than Jpmorgan Equity Fund. It trades about 0.33 of its potential returns per unit of risk. Jpmorgan Equity Fund is currently generating about 0.31 per unit of risk. If you would invest 2,444 in Amg Managers Fairpointe on September 4, 2024 and sell it today you would earn a total of 173.00 from holding Amg Managers Fairpointe or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Fairpointe vs. Jpmorgan Equity Fund
Performance |
| Timeline |
| Amg Managers Fairpointe |
| Jpmorgan Equity |
Amg Managers and Jpmorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Jpmorgan
The main advantage of trading using opposite Amg Managers and Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Jpmorgan 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 will offset losses from the drop in Jpmorgan's long position.| Amg Managers vs. Ab Bond Inflation | Amg Managers vs. Limited Term Tax | Amg Managers vs. Angel Oak Financial | Amg Managers vs. Multisector Bond Sma |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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