Correlation Between Jpmorgan Research and Icon Long/short
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Research and Icon 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 Research and Icon Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Research Market and Icon Longshort Fund, you can compare the effects of market volatilities on Jpmorgan Research and Icon 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 Research with a short position of Icon Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Research and Icon Long/short.
Diversification Opportunities for Jpmorgan Research and Icon Long/short
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jpmorgan and Icon is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Research Market and Icon Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Long/short and Jpmorgan Research 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 Research Market are associated (or correlated) with Icon 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 Icon Long/short has no effect on the direction of Jpmorgan Research i.e., Jpmorgan Research and Icon Long/short go up and down completely randomly.
Pair Corralation between Jpmorgan Research and Icon Long/short
Assuming the 90 days horizon Jpmorgan Research Market is expected to generate 0.09 times more return on investment than Icon Long/short. However, Jpmorgan Research Market is 11.62 times less risky than Icon Long/short. It trades about 0.3 of its potential returns per unit of risk. Icon Longshort Fund is currently generating about 0.02 per unit of risk. If you would invest 1,501 in Jpmorgan Research Market on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Jpmorgan Research Market or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jpmorgan Research Market vs. Icon Longshort Fund
Performance |
| Timeline |
| Jpmorgan Research Market |
| Icon Long/short |
Jpmorgan Research and Icon Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Research and Icon Long/short
The main advantage of trading using opposite Jpmorgan Research and Icon Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Research position performs unexpectedly, Icon 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 Icon Long/short will offset losses from the drop in Icon Long/short's long position.| Jpmorgan Research vs. Ultra Short Fixed Income | Jpmorgan Research vs. Ab Select Longshort | Jpmorgan Research vs. Federated Ultrashort Bond | Jpmorgan Research vs. Vanguard Institutional Short Term |
| Icon Long/short vs. Ms Global Fixed | Icon Long/short vs. Wasatch Global Opportunities | Icon Long/short vs. T Rowe Price | Icon Long/short vs. Pimco Global Multi Asset |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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