Correlation Between Kellner Merger and Jpmorgan Value
Can any of the company-specific risk be diversified away by investing in both Kellner Merger and Jpmorgan Value 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 Kellner Merger and Jpmorgan Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellner Merger Fund and Jpmorgan Value Advantage, you can compare the effects of market volatilities on Kellner Merger and Jpmorgan Value 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 Kellner Merger with a short position of Jpmorgan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellner Merger and Jpmorgan Value.
Diversification Opportunities for Kellner Merger and Jpmorgan Value
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kellner and Jpmorgan is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kellner Merger Fund and Jpmorgan Value Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Value Advantage and Kellner Merger 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 Kellner Merger Fund are associated (or correlated) with Jpmorgan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Value Advantage has no effect on the direction of Kellner Merger i.e., Kellner Merger and Jpmorgan Value go up and down completely randomly.
Pair Corralation between Kellner Merger and Jpmorgan Value
Assuming the 90 days horizon Kellner Merger Fund is expected to generate 0.18 times more return on investment than Jpmorgan Value. However, Kellner Merger Fund is 5.62 times less risky than Jpmorgan Value. It trades about 0.0 of its potential returns per unit of risk. Jpmorgan Value Advantage is currently generating about -0.13 per unit of risk. If you would invest 1,094 in Kellner Merger Fund on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Kellner Merger Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kellner Merger Fund vs. Jpmorgan Value Advantage
Performance |
| Timeline |
| Kellner Merger |
| Jpmorgan Value Advantage |
Kellner Merger and Jpmorgan Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellner Merger and Jpmorgan Value
The main advantage of trading using opposite Kellner Merger and Jpmorgan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellner Merger position performs unexpectedly, Jpmorgan Value 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 Value will offset losses from the drop in Jpmorgan Value's long position.| Kellner Merger vs. Rational Strategic Allocation | Kellner Merger vs. T Rowe Price | Kellner Merger vs. Jhancock Disciplined Value | Kellner Merger vs. Washington Mutual Investors |
| Jpmorgan Value vs. Jpmorgan Mid Cap | Jpmorgan Value vs. Jpmorgan Equity Fund | Jpmorgan Value vs. Massachusetts Investors Trust | Jpmorgan Value vs. Causeway International Value |
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 CEOs Directory module to screen CEOs from public companies around the world.
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