Correlation Between Jpmorgan Hedged and Easterly Snow
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged and Easterly Snow 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 Easterly Snow 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 Easterly Snow Longshort, you can compare the effects of market volatilities on Jpmorgan Hedged and Easterly Snow 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 Easterly Snow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Easterly Snow.
Diversification Opportunities for Jpmorgan Hedged and Easterly Snow
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jpmorgan and Easterly is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Easterly Snow Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easterly Snow Longshort 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 Easterly Snow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easterly Snow Longshort has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Easterly Snow go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Easterly Snow
Assuming the 90 days horizon Jpmorgan Hedged Equity is expected to generate 0.69 times more return on investment than Easterly Snow. However, Jpmorgan Hedged Equity is 1.44 times less risky than Easterly Snow. It trades about 0.15 of its potential returns per unit of risk. Easterly Snow Longshort is currently generating about 0.08 per unit of risk. If you would invest 3,014 in Jpmorgan Hedged Equity on November 3, 2024 and sell it today you would earn a total of 337.00 from holding Jpmorgan Hedged Equity or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Hedged Equity vs. Easterly Snow Longshort
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Easterly Snow Longshort |
Jpmorgan Hedged and Easterly Snow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Easterly Snow
The main advantage of trading using opposite Jpmorgan Hedged and Easterly Snow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged position performs unexpectedly, Easterly Snow 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 Easterly Snow will offset losses from the drop in Easterly Snow'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 |
| Easterly Snow vs. Lind Capital Partners | Easterly Snow vs. Oklahoma Municipal Fund | Easterly Snow vs. Pace Municipal Fixed | Easterly Snow vs. Baird Quality Intermediate |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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