Correlation Between Jpmorgan Hedged and Mairs Power
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged and Mairs Power 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 Mairs Power 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 Mairs Power Growth, you can compare the effects of market volatilities on Jpmorgan Hedged and Mairs Power 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 Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Mairs Power.
Diversification Opportunities for Jpmorgan Hedged and Mairs Power
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Mairs is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Mairs Power Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Growth 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 Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Growth has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Mairs Power go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Mairs Power
Assuming the 90 days horizon Jpmorgan Hedged is expected to generate 1.29 times less return on investment than Mairs Power. But when comparing it to its historical volatility, Jpmorgan Hedged Equity is 1.73 times less risky than Mairs Power. It trades about 0.14 of its potential returns per unit of risk. Mairs Power Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 11,878 in Mairs Power Growth on August 29, 2024 and sell it today you would earn a total of 6,369 from holding Mairs Power Growth or generate 53.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Hedged Equity vs. Mairs Power Growth
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Mairs Power Growth |
Jpmorgan Hedged and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Mairs Power
The main advantage of trading using opposite Jpmorgan Hedged and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power'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 |
| Mairs Power vs. Vanguard Total Stock | Mairs Power vs. Vanguard 500 Index | Mairs Power vs. Vanguard Total Stock | Mairs Power vs. Vanguard Total Stock |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |