Correlation Between Firsthand Alternative and Jpmorgan Emerging
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Jpmorgan Emerging 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 Firsthand Alternative and Jpmorgan Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Jpmorgan Emerging Markets, you can compare the effects of market volatilities on Firsthand Alternative and Jpmorgan Emerging 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 Firsthand Alternative with a short position of Jpmorgan Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Jpmorgan Emerging.
Diversification Opportunities for Firsthand Alternative and Jpmorgan Emerging
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Firsthand and Jpmorgan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Jpmorgan Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Emerging Markets and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Jpmorgan Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Emerging Markets has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Jpmorgan Emerging go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Jpmorgan Emerging
Assuming the 90 days horizon Firsthand Alternative Energy is expected to under-perform the Jpmorgan Emerging. In addition to that, Firsthand Alternative is 4.47 times more volatile than Jpmorgan Emerging Markets. It trades about -0.01 of its total potential returns per unit of risk. Jpmorgan Emerging Markets is currently generating about 0.09 per unit of volatility. If you would invest 534.00 in Jpmorgan Emerging Markets on August 26, 2024 and sell it today you would earn a total of 94.00 from holding Jpmorgan Emerging Markets or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Jpmorgan Emerging Markets
Performance |
| Timeline |
| Firsthand Alternative |
| Jpmorgan Emerging Markets |
Firsthand Alternative and Jpmorgan Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Jpmorgan Emerging
The main advantage of trading using opposite Firsthand Alternative and Jpmorgan Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Jpmorgan Emerging 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 Emerging will offset losses from the drop in Jpmorgan Emerging's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Jpmorgan Emerging vs. Firsthand Alternative Energy | Jpmorgan Emerging vs. Short Oil Gas | Jpmorgan Emerging vs. Calvert Global Energy | Jpmorgan Emerging vs. Dreyfus Natural Resources |
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 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.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |