Correlation Between Jpmorgan Short and American Funds
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Short and American Funds 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 Jpmorgan Short and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Short Duration and American Funds Retirement, you can compare the effects of market volatilities on Jpmorgan Short and American Funds 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 Jpmorgan Short with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Short and American Funds.
Diversification Opportunities for Jpmorgan Short and American Funds
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and American is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Short Duration and American Funds Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Retirement and Jpmorgan Short 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 Jpmorgan Short Duration are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Retirement has no effect on the direction of Jpmorgan Short i.e., Jpmorgan Short and American Funds go up and down completely randomly.
Pair Corralation between Jpmorgan Short and American Funds
Assuming the 90 days horizon Jpmorgan Short Duration is expected to under-perform the American Funds. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Short Duration is 3.38 times less risky than American Funds. The mutual fund trades about -0.08 of its potential returns per unit of risk. The American Funds Retirement is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,273 in American Funds Retirement on August 30, 2024 and sell it today you would earn a total of 6.00 from holding American Funds Retirement or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Short Duration vs. American Funds Retirement
Performance |
| Timeline |
| Jpmorgan Short Duration |
| American Funds Retirement |
Jpmorgan Short and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Short and American Funds
The main advantage of trading using opposite Jpmorgan Short and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Short position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Jpmorgan Short vs. Qs Large Cap | Jpmorgan Short vs. Ab Value Fund | Jpmorgan Short vs. Fa 529 Aggressive | Jpmorgan Short vs. Materials Portfolio Fidelity |
| American Funds vs. Shelton Funds | American Funds vs. Volumetric Fund Volumetric | American Funds vs. Ab Value Fund | American Funds vs. T Rowe Price |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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