Correlation Between Europac Gold and Jpmorgan Trust
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Jpmorgan Trust 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 Europac Gold and Jpmorgan Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Jpmorgan Trust I, you can compare the effects of market volatilities on Europac Gold and Jpmorgan Trust 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 Europac Gold with a short position of Jpmorgan Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Jpmorgan Trust.
Diversification Opportunities for Europac Gold and Jpmorgan Trust
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Europac and Jpmorgan is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Jpmorgan Trust I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Trust I and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Jpmorgan Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Trust I has no effect on the direction of Europac Gold i.e., Europac Gold and Jpmorgan Trust go up and down completely randomly.
Pair Corralation between Europac Gold and Jpmorgan Trust
Assuming the 90 days horizon Europac Gold is expected to generate 925.04 times less return on investment than Jpmorgan Trust. But when comparing it to its historical volatility, Europac Gold Fund is 54.66 times less risky than Jpmorgan Trust. It trades about 0.02 of its potential returns per unit of risk. Jpmorgan Trust I is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Jpmorgan Trust I on September 14, 2024 and sell it today you would earn a total of 270.00 from holding Jpmorgan Trust I or generate 270.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.28% |
| Values | Daily Returns |
Europac Gold Fund vs. Jpmorgan Trust I
Performance |
| Timeline |
| Europac Gold |
| Jpmorgan Trust I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Europac Gold and Jpmorgan Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Jpmorgan Trust
The main advantage of trading using opposite Europac Gold and Jpmorgan Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Jpmorgan Trust 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 Trust will offset losses from the drop in Jpmorgan Trust's long position.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
| Jpmorgan Trust vs. Gold And Precious | Jpmorgan Trust vs. Invesco Gold Special | Jpmorgan Trust vs. Europac Gold Fund | Jpmorgan Trust vs. International Investors Gold |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |