Correlation Between Jpmorgan Small and Mainstay Candriam
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Small and Mainstay Candriam 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 Small and Mainstay Candriam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Small Cap and Mainstay Candriam Emerging, you can compare the effects of market volatilities on Jpmorgan Small and Mainstay Candriam 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 Small with a short position of Mainstay Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Small and Mainstay Candriam.
Diversification Opportunities for Jpmorgan Small and Mainstay Candriam
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jpmorgan and Mainstay is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Small Cap and Mainstay Candriam Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Candriam and Jpmorgan Small 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 Small Cap are associated (or correlated) with Mainstay Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Candriam has no effect on the direction of Jpmorgan Small i.e., Jpmorgan Small and Mainstay Candriam go up and down completely randomly.
Pair Corralation between Jpmorgan Small and Mainstay Candriam
Assuming the 90 days horizon Jpmorgan Small Cap is expected to generate 1.48 times more return on investment than Mainstay Candriam. However, Jpmorgan Small is 1.48 times more volatile than Mainstay Candriam Emerging. It trades about 0.05 of its potential returns per unit of risk. Mainstay Candriam Emerging is currently generating about 0.03 per unit of risk. If you would invest 1,817 in Jpmorgan Small Cap on September 3, 2024 and sell it today you would earn a total of 570.00 from holding Jpmorgan Small Cap or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Small Cap vs. Mainstay Candriam Emerging
Performance |
| Timeline |
| Jpmorgan Small Cap |
| Mainstay Candriam |
Jpmorgan Small and Mainstay Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Small and Mainstay Candriam
The main advantage of trading using opposite Jpmorgan Small and Mainstay Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Small position performs unexpectedly, Mainstay Candriam 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 Mainstay Candriam will offset losses from the drop in Mainstay Candriam's long position.| Jpmorgan Small vs. James Balanced Golden | Jpmorgan Small vs. Global Gold Fund | Jpmorgan Small vs. Goldman Sachs Short | Jpmorgan Small vs. Oppenheimer Gold Special |
| Mainstay Candriam vs. Gmo High Yield | Mainstay Candriam vs. Ab Impact Municipal | Mainstay Candriam vs. Maryland Tax Free Bond | Mainstay Candriam vs. Versatile Bond Portfolio |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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