Correlation Between Jpmorgan Hedged and Mfs International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged and Mfs International 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 Mfs International 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 Mfs International Diversification, you can compare the effects of market volatilities on Jpmorgan Hedged and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Mfs International.
Diversification Opportunities for Jpmorgan Hedged and Mfs International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jpmorgan and Mfs is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Mfs International Diversificat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Mfs International go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Mfs International
Assuming the 90 days horizon Jpmorgan Hedged is expected to generate 3.82 times less return on investment than Mfs International. But when comparing it to its historical volatility, Jpmorgan Hedged Equity is 1.66 times less risky than Mfs International. It trades about 0.11 of its potential returns per unit of risk. Mfs International Diversification is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,292 in Mfs International Diversification on November 9, 2024 and sell it today you would earn a total of 91.00 from holding Mfs International Diversification or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Hedged Equity vs. Mfs International Diversificat
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Mfs International |
Jpmorgan Hedged and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Mfs International
The main advantage of trading using opposite Jpmorgan Hedged and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International'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 |
| Mfs International vs. Mfs Growth Fund | Mfs International vs. Prudential Total Return | Mfs International vs. Mfs Value Fund | Mfs International vs. John Hancock Bond |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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