Correlation Between Jpmorgan Investor and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Investor and Amg Managers 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 Investor and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Investor Balanced and Amg Managers Montag, you can compare the effects of market volatilities on Jpmorgan Investor and Amg Managers 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 Investor with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Investor and Amg Managers.
Diversification Opportunities for Jpmorgan Investor and Amg Managers
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jpmorgan and Amg is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Investor Balanced and Amg Managers Montag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Montag and Jpmorgan Investor 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 Investor Balanced are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Montag has no effect on the direction of Jpmorgan Investor i.e., Jpmorgan Investor and Amg Managers go up and down completely randomly.
Pair Corralation between Jpmorgan Investor and Amg Managers
Assuming the 90 days horizon Jpmorgan Investor is expected to generate 2.3 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Jpmorgan Investor Balanced is 3.0 times less risky than Amg Managers. It trades about 0.19 of its potential returns per unit of risk. Amg Managers Montag is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,425 in Amg Managers Montag on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Amg Managers Montag or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jpmorgan Investor Balanced vs. Amg Managers Montag
Performance |
| Timeline |
| Jpmorgan Investor |
| Amg Managers Montag |
Jpmorgan Investor and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Investor and Amg Managers
The main advantage of trading using opposite Jpmorgan Investor and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Investor position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Jpmorgan Investor vs. Amg Managers Montag | Jpmorgan Investor vs. Clearbridge Appreciation Fund | Jpmorgan Investor vs. Clearbridge Large Cap | Jpmorgan Investor vs. Aquagold International |
| Amg Managers vs. Angel Oak Financial | Amg Managers vs. Prudential Jennison Financial | Amg Managers vs. Gabelli Global Financial | Amg Managers vs. Royce Global Financial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |