Correlation Between Jpmorgan Hedged and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged and Gateway 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 Hedged and Gateway Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Hedged Equity and Gateway Fund Class, you can compare the effects of market volatilities on Jpmorgan Hedged and Gateway 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 Hedged with a short position of Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Gateway Fund.
Diversification Opportunities for Jpmorgan Hedged and Gateway Fund
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and GATEWAY is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class and Jpmorgan Hedged 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 Hedged Equity are associated (or correlated) with Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Gateway Fund go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Gateway Fund
Assuming the 90 days horizon Jpmorgan Hedged is expected to generate 1.41 times less return on investment than Gateway Fund. In addition to that, Jpmorgan Hedged is 1.03 times more volatile than Gateway Fund Class. It trades about 0.11 of its total potential returns per unit of risk. Gateway Fund Class is currently generating about 0.16 per unit of volatility. If you would invest 4,523 in Gateway Fund Class on August 24, 2024 and sell it today you would earn a total of 86.00 from holding Gateway Fund Class or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jpmorgan Hedged Equity vs. Gateway Fund Class
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Gateway Fund Class |
Jpmorgan Hedged and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Gateway Fund
The main advantage of trading using opposite Jpmorgan Hedged and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged position performs unexpectedly, Gateway 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| Jpmorgan Hedged vs. Jpmorgan Equity Income | Jpmorgan Hedged vs. Jpmorgan Hedged Equity | Jpmorgan Hedged vs. Calamos Market Neutral | Jpmorgan Hedged vs. Jpmorgan Hedged Equity |
| Gateway Fund vs. Forum Real Estate | Gateway Fund vs. Commonwealth Real Estate | Gateway Fund vs. Dunham Real Estate | Gateway Fund vs. Pender Real Estate |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |