Correlation Between Jpmorgan Intrepid and Amg Timessquare
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Intrepid and Amg Timessquare 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 Intrepid and Amg Timessquare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Intrepid Growth and Amg Timessquare Mid, you can compare the effects of market volatilities on Jpmorgan Intrepid and Amg Timessquare 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 Intrepid with a short position of Amg Timessquare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Intrepid and Amg Timessquare.
Diversification Opportunities for Jpmorgan Intrepid and Amg Timessquare
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jpmorgan and Amg is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Intrepid Growth and Amg Timessquare Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Timessquare Mid and Jpmorgan Intrepid 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 Intrepid Growth are associated (or correlated) with Amg Timessquare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Timessquare Mid has no effect on the direction of Jpmorgan Intrepid i.e., Jpmorgan Intrepid and Amg Timessquare go up and down completely randomly.
Pair Corralation between Jpmorgan Intrepid and Amg Timessquare
Assuming the 90 days horizon Jpmorgan Intrepid Growth is expected to generate 1.02 times more return on investment than Amg Timessquare. However, Jpmorgan Intrepid is 1.02 times more volatile than Amg Timessquare Mid. It trades about -0.1 of its potential returns per unit of risk. Amg Timessquare Mid is currently generating about -0.11 per unit of risk. If you would invest 8,460 in Jpmorgan Intrepid Growth on November 28, 2024 and sell it today you would lose (179.00) from holding Jpmorgan Intrepid Growth or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Intrepid Growth vs. Amg Timessquare Mid
Performance |
| Timeline |
| Jpmorgan Intrepid Growth |
| Amg Timessquare Mid |
Jpmorgan Intrepid and Amg Timessquare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Intrepid and Amg Timessquare
The main advantage of trading using opposite Jpmorgan Intrepid and Amg Timessquare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Intrepid position performs unexpectedly, Amg Timessquare 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 Timessquare will offset losses from the drop in Amg Timessquare's long position.| Jpmorgan Intrepid vs. Jpmorgan Intrepid Growth | Jpmorgan Intrepid vs. Jpmorgan Intrepid Growth | Jpmorgan Intrepid vs. Jpmorgan Value Advantage | Jpmorgan Intrepid vs. Jpmorgan Large Cap |
| Amg Timessquare vs. Amg Timessquare Small | Amg Timessquare vs. Amg Timessquare Mid | Amg Timessquare vs. Tcm Small Cap | Amg Timessquare vs. Small Pany Growth |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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