Correlation Between Jpmorgan International and Thornburg International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan International and Thornburg International 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 Thornburg International 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 Thornburg International Value, you can compare the effects of market volatilities on Jpmorgan International and Thornburg International 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 Thornburg International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan International and Thornburg International.
Diversification Opportunities for Jpmorgan International and Thornburg International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and Thornburg is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan International Value and Thornburg International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International 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 Thornburg International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg International has no effect on the direction of Jpmorgan International i.e., Jpmorgan International and Thornburg International go up and down completely randomly.
Pair Corralation between Jpmorgan International and Thornburg International
Assuming the 90 days horizon Jpmorgan International Value is expected to generate 1.03 times more return on investment than Thornburg International. However, Jpmorgan International is 1.03 times more volatile than Thornburg International Value. It trades about 0.06 of its potential returns per unit of risk. Thornburg International Value is currently generating about 0.05 per unit of risk. If you would invest 1,421 in Jpmorgan International Value on October 23, 2024 and sell it today you would earn a total of 23.00 from holding Jpmorgan International Value or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan International Value vs. Thornburg International Value
Performance |
| Timeline |
| Jpmorgan International |
| Thornburg International |
Jpmorgan International and Thornburg International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan International and Thornburg International
The main advantage of trading using opposite Jpmorgan International and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan International position performs unexpectedly, Thornburg International 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 Thornburg International will offset losses from the drop in Thornburg International's long position.| Jpmorgan International vs. T Rowe Price | Jpmorgan International vs. Gmo Global Equity | Jpmorgan International vs. Aqr Long Short Equity | Jpmorgan International vs. Smallcap World Fund |
| Thornburg International vs. Jpmorgan Mid Cap | Thornburg International vs. Jpmorgan International Value | Thornburg International vs. Jpmorgan Equity Fund | Thornburg International vs. Jpmorgan High Yield |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |