Correlation Between Jpmorgan International and Multisector Bond
Can any of the company-specific risk be diversified away by investing in both Jpmorgan International and Multisector Bond 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 International and Multisector Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan International Value and Multisector Bond Sma, you can compare the effects of market volatilities on Jpmorgan International and Multisector Bond 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 International with a short position of Multisector Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan International and Multisector Bond.
Diversification Opportunities for Jpmorgan International and Multisector Bond
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Multisector is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan International Value and Multisector Bond Sma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multisector Bond Sma and Jpmorgan International 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 International Value are associated (or correlated) with Multisector Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multisector Bond Sma has no effect on the direction of Jpmorgan International i.e., Jpmorgan International and Multisector Bond go up and down completely randomly.
Pair Corralation between Jpmorgan International and Multisector Bond
Assuming the 90 days horizon Jpmorgan International Value is expected to under-perform the Multisector Bond. In addition to that, Jpmorgan International is 2.62 times more volatile than Multisector Bond Sma. It trades about -0.1 of its total potential returns per unit of risk. Multisector Bond Sma is currently generating about 0.15 per unit of volatility. If you would invest 1,349 in Multisector Bond Sma on August 26, 2024 and sell it today you would earn a total of 12.00 from holding Multisector Bond Sma or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan International Value vs. Multisector Bond Sma
Performance |
| Timeline |
| Jpmorgan International |
| Multisector Bond Sma |
Jpmorgan International and Multisector Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan International and Multisector Bond
The main advantage of trading using opposite Jpmorgan International and Multisector Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan International position performs unexpectedly, Multisector Bond 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 Multisector Bond will offset losses from the drop in Multisector Bond's long position.| Jpmorgan International vs. Multisector Bond Sma | Jpmorgan International vs. Ms Global Fixed | Jpmorgan International vs. Mirova Global Green | Jpmorgan International vs. Rationalpier 88 Convertible |
| Multisector Bond vs. Rbc Bluebay Emerging | Multisector Bond vs. Black Oak Emerging | Multisector Bond vs. Nasdaq 100 2x Strategy | Multisector Bond vs. Ashmore Emerging Markets |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |