Correlation Between Jpmorgan Growth and Sentinel Small
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Growth and Sentinel Small 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 Growth and Sentinel Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Growth Advantage and Sentinel Small Pany, you can compare the effects of market volatilities on Jpmorgan Growth and Sentinel Small 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 Growth with a short position of Sentinel Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Growth and Sentinel Small.
Diversification Opportunities for Jpmorgan Growth and Sentinel Small
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Sentinel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Growth Advantage and Sentinel Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Small Pany and Jpmorgan Growth 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 Growth Advantage are associated (or correlated) with Sentinel Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Small Pany has no effect on the direction of Jpmorgan Growth i.e., Jpmorgan Growth and Sentinel Small go up and down completely randomly.
Pair Corralation between Jpmorgan Growth and Sentinel Small
Assuming the 90 days horizon Jpmorgan Growth is expected to generate 1.17 times less return on investment than Sentinel Small. In addition to that, Jpmorgan Growth is 1.09 times more volatile than Sentinel Small Pany. It trades about 0.09 of its total potential returns per unit of risk. Sentinel Small Pany is currently generating about 0.12 per unit of volatility. If you would invest 670.00 in Sentinel Small Pany on September 3, 2024 and sell it today you would earn a total of 110.00 from holding Sentinel Small Pany or generate 16.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Growth Advantage vs. Sentinel Small Pany
Performance |
| Timeline |
| Jpmorgan Growth Advantage |
| Sentinel Small Pany |
Jpmorgan Growth and Sentinel Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Growth and Sentinel Small
The main advantage of trading using opposite Jpmorgan Growth and Sentinel Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Growth position performs unexpectedly, Sentinel Small 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 Sentinel Small will offset losses from the drop in Sentinel Small's long position.| Jpmorgan Growth vs. Alger Health Sciences | Jpmorgan Growth vs. Health Biotchnology Portfolio | Jpmorgan Growth vs. Eventide Healthcare Life | Jpmorgan Growth vs. Blackrock Health Sciences |
| Sentinel Small vs. Vanguard Small Cap Index | Sentinel Small vs. Vanguard Small Cap Index | Sentinel Small vs. Vanguard Small Cap Index | Sentinel Small vs. Vanguard Small Cap Index |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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