Correlation Between Jpmorgan Hedged and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Hedged and Loomis Sayles 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 Loomis Sayles 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 Loomis Sayles Global, you can compare the effects of market volatilities on Jpmorgan Hedged and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Hedged and Loomis Sayles.
Diversification Opportunities for Jpmorgan Hedged and Loomis Sayles
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jpmorgan and Loomis is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Loomis Sayles Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Global 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Global has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Loomis Sayles go up and down completely randomly.
Pair Corralation between Jpmorgan Hedged and Loomis Sayles
Assuming the 90 days horizon Jpmorgan Hedged Equity is expected to generate 0.71 times more return on investment than Loomis Sayles. However, Jpmorgan Hedged Equity is 1.4 times less risky than Loomis Sayles. It trades about 0.16 of its potential returns per unit of risk. Loomis Sayles Global is currently generating about 0.09 per unit of risk. If you would invest 2,781 in Jpmorgan Hedged Equity on August 24, 2024 and sell it today you would earn a total of 571.00 from holding Jpmorgan Hedged Equity or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Hedged Equity vs. Loomis Sayles Global
Performance |
| Timeline |
| Jpmorgan Hedged Equity |
| Loomis Sayles Global |
Jpmorgan Hedged and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Hedged and Loomis Sayles
The main advantage of trading using opposite Jpmorgan Hedged and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Hedged position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Jpmorgan Hedged vs. Jpmorgan Hedged Equity | Jpmorgan Hedged vs. Jpmorgan Hedged Equity | Jpmorgan Hedged vs. Janus Forty Fund | Jpmorgan Hedged vs. Janus Forty Fund |
| Loomis Sayles vs. HUMANA INC | Loomis Sayles vs. Aquagold International | Loomis Sayles vs. Barloworld Ltd ADR | Loomis Sayles vs. Morningstar Unconstrained Allocation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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