Correlation Between Cognios Market and Jp Morgan
Can any of the company-specific risk be diversified away by investing in both Cognios Market and Jp Morgan 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 Cognios Market and Jp Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognios Market Neutral and Jp Morgan Smartretirement, you can compare the effects of market volatilities on Cognios Market and Jp Morgan 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 Cognios Market with a short position of Jp Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognios Market and Jp Morgan.
Diversification Opportunities for Cognios Market and Jp Morgan
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cognios and JTSQX is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cognios Market Neutral and Jp Morgan Smartretirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jp Morgan Smartretirement and Cognios Market 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 Cognios Market Neutral are associated (or correlated) with Jp Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jp Morgan Smartretirement has no effect on the direction of Cognios Market i.e., Cognios Market and Jp Morgan go up and down completely randomly.
Pair Corralation between Cognios Market and Jp Morgan
Assuming the 90 days horizon Cognios Market Neutral is expected to generate 0.43 times more return on investment than Jp Morgan. However, Cognios Market Neutral is 2.34 times less risky than Jp Morgan. It trades about -0.01 of its potential returns per unit of risk. Jp Morgan Smartretirement is currently generating about -0.12 per unit of risk. If you would invest 1,233 in Cognios Market Neutral on December 31, 2024 and sell it today you would lose (1.00) from holding Cognios Market Neutral or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cognios Market Neutral vs. Jp Morgan Smartretirement
Performance |
| Timeline |
| Cognios Market Neutral |
| Jp Morgan Smartretirement |
Cognios Market and Jp Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognios Market and Jp Morgan
The main advantage of trading using opposite Cognios Market and Jp Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognios Market position performs unexpectedly, Jp Morgan 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 Jp Morgan will offset losses from the drop in Jp Morgan's long position.| Cognios Market vs. Gmo High Yield | Cognios Market vs. Msift High Yield | Cognios Market vs. Transamerica High Yield | Cognios Market vs. Aqr Risk Parity |
| Jp Morgan vs. Ms Global Fixed | Jp Morgan vs. Aqr Global Macro | Jp Morgan vs. Tweedy Browne Global | Jp Morgan vs. Gmo Global Developed |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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