Correlation Between Jpmorgan and Mfs International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan and Mfs 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 and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Large Cap and Mfs International Growth, you can compare the effects of market volatilities on Jpmorgan and Mfs 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 with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan and Mfs International.
Diversification Opportunities for Jpmorgan and Mfs International
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jpmorgan and Mfs is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Large Cap and Mfs International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Growth and Jpmorgan 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 Large Cap are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Growth has no effect on the direction of Jpmorgan i.e., Jpmorgan and Mfs International go up and down completely randomly.
Pair Corralation between Jpmorgan and Mfs International
Assuming the 90 days horizon Jpmorgan Large Cap is expected to generate 1.11 times more return on investment than Mfs International. However, Jpmorgan is 1.11 times more volatile than Mfs International Growth. It trades about 0.15 of its potential returns per unit of risk. Mfs International Growth is currently generating about -0.24 per unit of risk. If you would invest 2,253 in Jpmorgan Large Cap on August 29, 2024 and sell it today you would earn a total of 67.00 from holding Jpmorgan Large Cap or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Large Cap vs. Mfs International Growth
Performance |
| Timeline |
| Jpmorgan Large Cap |
| Mfs International Growth |
Jpmorgan and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan and Mfs International
The main advantage of trading using opposite Jpmorgan and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan position performs unexpectedly, Mfs 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 Mfs International will offset losses from the drop in Mfs International's long position.| Jpmorgan vs. Vanguard Total Stock | Jpmorgan vs. Vanguard 500 Index | Jpmorgan vs. Vanguard Total Stock | Jpmorgan vs. Vanguard Total Stock |
| Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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