Correlation Between Jpmorgan Equity and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Amg Managers 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 Equity and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Fund and Amg Managers Fairpointe, you can compare the effects of market volatilities on Jpmorgan Equity and Amg Managers 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 Equity with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Amg Managers.
Diversification Opportunities for Jpmorgan Equity and Amg Managers
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Amg is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Fund and Amg Managers Fairpointe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Fairpointe and Jpmorgan Equity 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 Equity Fund are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Fairpointe has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Amg Managers go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Amg Managers
Assuming the 90 days horizon Jpmorgan Equity Fund is expected to generate 0.93 times more return on investment than Amg Managers. However, Jpmorgan Equity Fund is 1.08 times less risky than Amg Managers. It trades about 0.12 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.1 per unit of risk. If you would invest 1,947 in Jpmorgan Equity Fund on September 12, 2024 and sell it today you would earn a total of 776.00 from holding Jpmorgan Equity Fund or generate 39.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Fund vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Jpmorgan Equity |
| Amg Managers Fairpointe |
Jpmorgan Equity and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Amg Managers
The main advantage of trading using opposite Jpmorgan Equity and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Jpmorgan Equity vs. Vanguard Total Stock | Jpmorgan Equity vs. Vanguard 500 Index | Jpmorgan Equity vs. Vanguard Total Stock | Jpmorgan Equity vs. Vanguard Total Stock |
| Amg Managers vs. Schwab Treasury Money | Amg Managers vs. Cref Money Market | Amg Managers vs. Aig Government Money | Amg Managers vs. Money Market Obligations |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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