Correlation Between Ftfa Franklin and Jpmorgan
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin 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 Ftfa Franklin and Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Jpmorgan Equity Fund, you can compare the effects of market volatilities on Ftfa Franklin 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 Ftfa Franklin with a short position of Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Jpmorgan.
Diversification Opportunities for Ftfa Franklin and Jpmorgan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ftfa and Jpmorgan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity and Ftfa Franklin 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 Ftfa Franklin Templeton Growth 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 Equity has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Jpmorgan go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Jpmorgan
Assuming the 90 days horizon Ftfa Franklin is expected to generate 1.45 times less return on investment than Jpmorgan. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 1.63 times less risky than Jpmorgan. It trades about 0.34 of its potential returns per unit of risk. Jpmorgan Equity Fund is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,438 in Jpmorgan Equity Fund on September 4, 2024 and sell it today you would earn a total of 135.00 from holding Jpmorgan Equity Fund or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Jpmorgan Equity Fund
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Jpmorgan Equity |
Ftfa Franklin and Jpmorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Jpmorgan
The main advantage of trading using opposite Ftfa Franklin and Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin 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.| Ftfa Franklin vs. Franklin Mutual Beacon | Ftfa Franklin vs. Templeton Developing Markets | Ftfa Franklin vs. Franklin Mutual Global | Ftfa Franklin vs. Franklin Mutual Global |
| Jpmorgan vs. Sprott Gold Equity | Jpmorgan vs. Fidelity Advisor Gold | Jpmorgan vs. International Investors Gold | Jpmorgan vs. First Eagle 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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