Correlation Between Jpmorgan Hedged and Stadion Trilogy
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged and Stadion Trilogy 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 Stadion Trilogy 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 Stadion Trilogy Alternative, you can compare the effects of market volatilities on Jpmorgan Hedged and Stadion Trilogy 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 Stadion Trilogy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Stadion Trilogy.
Diversification Opportunities for Jpmorgan Hedged and Stadion Trilogy
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Stadion is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Stadion Trilogy Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stadion Trilogy Alte 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 Stadion Trilogy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stadion Trilogy Alte has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Stadion Trilogy go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Stadion Trilogy
Assuming the 90 days horizon Jpmorgan Hedged Equity is expected to generate 1.08 times more return on investment than Stadion Trilogy. However, Jpmorgan Hedged is 1.08 times more volatile than Stadion Trilogy Alternative. It trades about 0.17 of its potential returns per unit of risk. Stadion Trilogy Alternative is currently generating about -0.12 per unit of risk. If you would invest 3,265 in Jpmorgan Hedged Equity on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Jpmorgan Hedged Equity or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Hedged Equity vs. Stadion Trilogy Alternative
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Stadion Trilogy Alte |
Jpmorgan Hedged and Stadion Trilogy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Stadion Trilogy
The main advantage of trading using opposite Jpmorgan Hedged and Stadion Trilogy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged position performs unexpectedly, Stadion Trilogy 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 Stadion Trilogy will offset losses from the drop in Stadion Trilogy's long position.| Jpmorgan Hedged vs. Jpmorgan Hedged Equity | Jpmorgan Hedged vs. Gateway Fund Class | Jpmorgan Hedged vs. Gateway Fund Class | Jpmorgan Hedged vs. Jpmorgan Hedged Equity |
| Stadion Trilogy vs. Jpmorgan Hedged Equity | Stadion Trilogy vs. Jpmorgan Hedged Equity | Stadion Trilogy vs. Gateway Fund Class | Stadion Trilogy vs. Gateway Fund Class |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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