Correlation Between Jpmorgan Emerging and Cambiar Small
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and Cambiar Small 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 Emerging and Cambiar Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Emerging Markets and Cambiar Small Cap, you can compare the effects of market volatilities on Jpmorgan Emerging and Cambiar Small 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 Emerging with a short position of Cambiar Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Cambiar Small.
Diversification Opportunities for Jpmorgan Emerging and Cambiar Small
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPMORGAN and Cambiar is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Cambiar Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Small Cap and Jpmorgan Emerging 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 Emerging Markets are associated (or correlated) with Cambiar Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Small Cap has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Cambiar Small go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Cambiar Small
Assuming the 90 days horizon Jpmorgan Emerging Markets is expected to under-perform the Cambiar Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Emerging Markets is 1.94 times less risky than Cambiar Small. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Cambiar Small Cap is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,751 in Cambiar Small Cap on September 4, 2024 and sell it today you would earn a total of 155.00 from holding Cambiar Small Cap or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Cambiar Small Cap
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Cambiar Small Cap |
Jpmorgan Emerging and Cambiar Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Cambiar Small
The main advantage of trading using opposite Jpmorgan Emerging and Cambiar Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, Cambiar Small 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 Cambiar Small will offset losses from the drop in Cambiar Small's long position.| Jpmorgan Emerging vs. Goldman Sachs Real | Jpmorgan Emerging vs. Fidelity Real Estate | Jpmorgan Emerging vs. Jhancock Real Estate | Jpmorgan Emerging vs. Amg Managers Centersquare |
| Cambiar Small vs. Cambiar International Equity | Cambiar Small vs. Cambiar Opportunity Fund | Cambiar Small vs. Cambiar Smid Fund | Cambiar Small vs. Cambiar Small Cap |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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