Correlation Between JPMorgan and Anfield Equity
Can any of the company-specific risk be diversified away by investing in both JPMorgan and Anfield 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 JPMorgan and Anfield Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan and Anfield Equity Sector, you can compare the effects of market volatilities on JPMorgan and Anfield 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 JPMorgan with a short position of Anfield Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan and Anfield Equity.
Diversification Opportunities for JPMorgan and Anfield Equity
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and Anfield is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan and Anfield Equity Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Equity Sector and JPMorgan 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 JPMorgan are associated (or correlated) with Anfield Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Equity Sector has no effect on the direction of JPMorgan i.e., JPMorgan and Anfield Equity go up and down completely randomly.
Pair Corralation between JPMorgan and Anfield Equity
Given the investment horizon of 90 days JPMorgan is expected to generate 42.5 times less return on investment than Anfield Equity. But when comparing it to its historical volatility, JPMorgan is 6.73 times less risky than Anfield Equity. It trades about 0.02 of its potential returns per unit of risk. Anfield Equity Sector is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,624 in Anfield Equity Sector on November 2, 2024 and sell it today you would earn a total of 172.00 from holding Anfield Equity Sector or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 34.95% |
| Values | Daily Returns |
JPMorgan vs. Anfield Equity Sector
Performance |
| Timeline |
| JPMorgan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anfield Equity Sector |
JPMorgan and Anfield Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan and Anfield Equity
The main advantage of trading using opposite JPMorgan and Anfield Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan position performs unexpectedly, Anfield 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 Anfield Equity will offset losses from the drop in Anfield Equity's long position.| JPMorgan vs. JPMorgan Core Plus | JPMorgan vs. JPMorgan BetaBuilders International | JPMorgan vs. JPMorgan BetaBuilders Equity | JPMorgan vs. JPMorgan BetaBuilders Canada |
| Anfield Equity vs. Anfield Universal Fixed | Anfield Equity vs. Aptus Drawdown Managed | Anfield Equity vs. Absolute Core Strategy | Anfield Equity vs. FT Cboe Vest |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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