Correlation Between Jpmorgan Intrepid and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Intrepid and Aqr Long-short 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 Intrepid and Aqr Long-short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Intrepid Growth and Aqr Long Short Equity, you can compare the effects of market volatilities on Jpmorgan Intrepid and Aqr Long-short 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 Intrepid with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Intrepid and Aqr Long-short.
Diversification Opportunities for Jpmorgan Intrepid and Aqr Long-short
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jpmorgan and Aqr is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Intrepid Growth and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short and Jpmorgan Intrepid 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 Intrepid Growth are associated (or correlated) with Aqr Long-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Jpmorgan Intrepid i.e., Jpmorgan Intrepid and Aqr Long-short go up and down completely randomly.
Pair Corralation between Jpmorgan Intrepid and Aqr Long-short
Assuming the 90 days horizon Jpmorgan Intrepid is expected to generate 2.08 times less return on investment than Aqr Long-short. In addition to that, Jpmorgan Intrepid is 2.59 times more volatile than Aqr Long Short Equity. It trades about 0.11 of its total potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.58 per unit of volatility. If you would invest 1,561 in Aqr Long Short Equity on August 26, 2024 and sell it today you would earn a total of 84.00 from holding Aqr Long Short Equity or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Intrepid Growth vs. Aqr Long Short Equity
Performance |
| Timeline |
| Jpmorgan Intrepid Growth |
| Aqr Long Short |
Jpmorgan Intrepid and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Intrepid and Aqr Long-short
The main advantage of trading using opposite Jpmorgan Intrepid and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Intrepid position performs unexpectedly, Aqr Long-short 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 Aqr Long-short will offset losses from the drop in Aqr Long-short's long position.| Jpmorgan Intrepid vs. Jpmorgan Value Advantage | Jpmorgan Intrepid vs. Jpmorgan Equity Income | Jpmorgan Intrepid vs. Jpmorgan Equity Fund | Jpmorgan Intrepid vs. Jpmorgan Emerging Markets |
| Aqr Long-short vs. Auer Growth Fund | Aqr Long-short vs. Archer Balanced Fund | Aqr Long-short vs. Ab Value Fund | Aqr Long-short vs. Qs Growth Fund |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |