Correlation Between Jpmorgan Emerging and Energy Fund
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and Energy Fund 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 Emerging and Energy Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Emerging Markets and Energy Fund Class, you can compare the effects of market volatilities on Jpmorgan Emerging and Energy Fund 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 Emerging with a short position of Energy Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Energy Fund.
Diversification Opportunities for Jpmorgan Emerging and Energy Fund
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JPMORGAN and Energy is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Energy Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Fund Class and Jpmorgan Emerging 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 Emerging Markets are associated (or correlated) with Energy Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Fund Class has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Energy Fund go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Energy Fund
Assuming the 90 days horizon Jpmorgan Emerging Markets is expected to generate 0.27 times more return on investment than Energy Fund. However, Jpmorgan Emerging Markets is 3.66 times less risky than Energy Fund. It trades about 0.03 of its potential returns per unit of risk. Energy Fund Class is currently generating about -0.03 per unit of risk. If you would invest 624.00 in Jpmorgan Emerging Markets on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Jpmorgan Emerging Markets or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Energy Fund Class
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Energy Fund Class |
Jpmorgan Emerging and Energy Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Energy Fund
The main advantage of trading using opposite Jpmorgan Emerging and Energy Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, Energy Fund 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 Energy Fund will offset losses from the drop in Energy Fund's long position.| Jpmorgan Emerging vs. Embark Commodity Strategy | Jpmorgan Emerging vs. Calvert Emerging Markets | Jpmorgan Emerging vs. Wasatch Frontier Emerging | Jpmorgan Emerging vs. Templeton Emerging Markets |
| Energy Fund vs. Jpmorgan Emerging Markets | Energy Fund vs. Embark Commodity Strategy | Energy Fund vs. Wasatch Frontier Emerging | Energy Fund vs. Balanced Strategy Fund |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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