Correlation Between Firsthand Alternative and Jpmorgan Equity
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Jpmorgan Equity 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 Equity 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 Equity Income, you can compare the effects of market volatilities on Firsthand Alternative and Jpmorgan Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Jpmorgan Equity.
Diversification Opportunities for Firsthand Alternative and Jpmorgan Equity
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firsthand and Jpmorgan is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Jpmorgan Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity Income 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 Equity. 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 Income has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Jpmorgan Equity go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Jpmorgan Equity
Assuming the 90 days horizon Firsthand Alternative Energy is expected to under-perform the Jpmorgan Equity. In addition to that, Firsthand Alternative is 2.48 times more volatile than Jpmorgan Equity Income. It trades about -0.01 of its total potential returns per unit of risk. Jpmorgan Equity Income is currently generating about 0.07 per unit of volatility. If you would invest 2,222 in Jpmorgan Equity Income on September 3, 2024 and sell it today you would earn a total of 532.00 from holding Jpmorgan Equity Income or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Jpmorgan Equity Income
Performance |
| Timeline |
| Firsthand Alternative |
| Jpmorgan Equity Income |
Firsthand Alternative and Jpmorgan Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Jpmorgan Equity
The main advantage of trading using opposite Firsthand Alternative and Jpmorgan Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Jpmorgan Equity 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 Equity will offset losses from the drop in Jpmorgan Equity'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 Equity vs. The Gabelli Small | Jpmorgan Equity vs. Principal Lifetime Hybrid | Jpmorgan Equity vs. Northern Small Cap | Jpmorgan Equity vs. Massmutual Premier Diversified |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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