Correlation Between Cullen Enhanced and Jpmorgan
Can any of the company-specific risk be diversified away by investing in both Cullen Enhanced and Jpmorgan 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 Cullen Enhanced and Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Enhanced Equity and Jpmorgan Research Equity, you can compare the effects of market volatilities on Cullen Enhanced and Jpmorgan 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 Cullen Enhanced with a short position of Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Enhanced and Jpmorgan.
Diversification Opportunities for Cullen Enhanced and Jpmorgan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cullen and Jpmorgan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Enhanced Equity and Jpmorgan Research Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Research Equity and Cullen Enhanced 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 Cullen Enhanced Equity are associated (or correlated) with Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Research Equity has no effect on the direction of Cullen Enhanced i.e., Cullen Enhanced and Jpmorgan go up and down completely randomly.
Pair Corralation between Cullen Enhanced and Jpmorgan
Assuming the 90 days horizon Cullen Enhanced is expected to generate 1.56 times less return on investment than Jpmorgan. In addition to that, Cullen Enhanced is 1.24 times more volatile than Jpmorgan Research Equity. It trades about 0.04 of its total potential returns per unit of risk. Jpmorgan Research Equity is currently generating about 0.09 per unit of volatility. If you would invest 1,206 in Jpmorgan Research Equity on September 4, 2024 and sell it today you would earn a total of 296.00 from holding Jpmorgan Research Equity or generate 24.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Enhanced Equity vs. Jpmorgan Research Equity
Performance |
| Timeline |
| Cullen Enhanced Equity |
| Jpmorgan Research Equity |
Cullen Enhanced and Jpmorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Enhanced and Jpmorgan
The main advantage of trading using opposite Cullen Enhanced and Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Enhanced position performs unexpectedly, Jpmorgan 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 will offset losses from the drop in Jpmorgan's long position.| Cullen Enhanced vs. Cullen High Dividend | Cullen Enhanced vs. Dreyfus Global Real | Cullen Enhanced vs. Baron Discovery Fund | Cullen Enhanced vs. Aqr Long Short Equity |
| Jpmorgan vs. Mid Cap Growth | Jpmorgan vs. Rational Defensive Growth | Jpmorgan vs. Pace Smallmedium Growth | Jpmorgan vs. Franklin Growth 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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