Correlation Between Jpmorgan Small and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Small and Oakmark 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 Small and Oakmark International 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 Oakmark International Small, you can compare the effects of market volatilities on Jpmorgan Small and Oakmark 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 Small with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Small and Oakmark International.
Diversification Opportunities for Jpmorgan Small and Oakmark International
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jpmorgan and Oakmark is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Small Cap and Oakmark International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Jpmorgan Small i.e., Jpmorgan Small and Oakmark International go up and down completely randomly.
Pair Corralation between Jpmorgan Small and Oakmark International
Assuming the 90 days horizon Jpmorgan Small Cap is expected to generate 1.47 times more return on investment than Oakmark International. However, Jpmorgan Small is 1.47 times more volatile than Oakmark International Small. It trades about 0.09 of its potential returns per unit of risk. Oakmark International Small is currently generating about -0.01 per unit of risk. If you would invest 2,063 in Jpmorgan Small Cap on September 3, 2024 and sell it today you would earn a total of 317.00 from holding Jpmorgan Small Cap or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Small Cap vs. Oakmark International Small
Performance |
| Timeline |
| Jpmorgan Small Cap |
| Oakmark International |
Jpmorgan Small and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Small and Oakmark International
The main advantage of trading using opposite Jpmorgan Small and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Small position performs unexpectedly, Oakmark 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 Oakmark International will offset losses from the drop in Oakmark International'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 |
| Oakmark International vs. Needham Aggressive Growth | Oakmark International vs. Multimanager Lifestyle Aggressive | Oakmark International vs. Pace High Yield | Oakmark International vs. Siit 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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