Correlation Between Firsthand Alternative and Jpmorgan Growth
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Jpmorgan Growth 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 Growth 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 Growth Advantage, you can compare the effects of market volatilities on Firsthand Alternative and Jpmorgan Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Jpmorgan Growth.
Diversification Opportunities for Firsthand Alternative and Jpmorgan Growth
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firsthand and Jpmorgan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Jpmorgan Growth Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Growth Advantage 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Growth Advantage has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Jpmorgan Growth go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Jpmorgan Growth
Assuming the 90 days horizon Firsthand Alternative Energy is expected to under-perform the Jpmorgan Growth. In addition to that, Firsthand Alternative is 1.64 times more volatile than Jpmorgan Growth Advantage. It trades about -0.01 of its total potential returns per unit of risk. Jpmorgan Growth Advantage is currently generating about 0.11 per unit of volatility. If you would invest 2,947 in Jpmorgan Growth Advantage on August 31, 2024 and sell it today you would earn a total of 1,489 from holding Jpmorgan Growth Advantage or generate 50.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Jpmorgan Growth Advantage
Performance |
| Timeline |
| Firsthand Alternative |
| Jpmorgan Growth Advantage |
Firsthand Alternative and Jpmorgan Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Jpmorgan Growth
The main advantage of trading using opposite Firsthand Alternative and Jpmorgan Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Jpmorgan Growth 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 Growth will offset losses from the drop in Jpmorgan Growth'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 Growth vs. Ab Global Risk | Jpmorgan Growth vs. Dreyfusstandish Global Fixed | Jpmorgan Growth vs. Commonwealth Global Fund | Jpmorgan Growth vs. Wasatch Global Opportunities |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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