Correlation Between Gateway Fund and Jpmorgan Hedged
Can any of the company-specific risk be diversified away by investing in both Gateway Fund and Jpmorgan Hedged 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 Gateway Fund and Jpmorgan Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Fund Class and Jpmorgan Hedged Equity, you can compare the effects of market volatilities on Gateway Fund and Jpmorgan Hedged 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 Gateway Fund with a short position of Jpmorgan Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Fund and Jpmorgan Hedged.
Diversification Opportunities for Gateway Fund and Jpmorgan Hedged
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Gateway and Jpmorgan is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Fund Class and Jpmorgan Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Hedged Equity and Gateway Fund 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 Gateway Fund Class are associated (or correlated) with Jpmorgan Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Hedged Equity has no effect on the direction of Gateway Fund i.e., Gateway Fund and Jpmorgan Hedged go up and down completely randomly.
Pair Corralation between Gateway Fund and Jpmorgan Hedged
Assuming the 90 days horizon Gateway Fund is expected to generate 1.08 times less return on investment than Jpmorgan Hedged. But when comparing it to its historical volatility, Gateway Fund Class is 1.16 times less risky than Jpmorgan Hedged. It trades about 0.16 of its potential returns per unit of risk. Jpmorgan Hedged Equity is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,764 in Jpmorgan Hedged Equity on August 24, 2024 and sell it today you would earn a total of 540.00 from holding Jpmorgan Hedged Equity or generate 19.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gateway Fund Class vs. Jpmorgan Hedged Equity
Performance |
| Timeline |
| Gateway Fund Class |
| Jpmorgan Hedged Equity |
Gateway Fund and Jpmorgan Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Fund and Jpmorgan Hedged
The main advantage of trading using opposite Gateway Fund and Jpmorgan Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Fund position performs unexpectedly, Jpmorgan Hedged 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 Hedged will offset losses from the drop in Jpmorgan Hedged's long position.| Gateway Fund vs. Transamerica Capital Growth | Gateway Fund vs. Voya Solution Moderately | Gateway Fund vs. HUMANA INC | Gateway Fund vs. Aquagold International |
| Jpmorgan Hedged vs. Jpmorgan Hedged Equity | Jpmorgan Hedged vs. Jpmorgan Hedged Equity | Jpmorgan Hedged vs. Jpmorgan Hedged Equity | Jpmorgan Hedged vs. Loomis Sayles Global |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |