Correlation Between Jpmorgan Equity and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Mfs Research 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 Mfs Research 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 Mfs Research Fund, you can compare the effects of market volatilities on Jpmorgan Equity and Mfs Research 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 Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Mfs Research.
Diversification Opportunities for Jpmorgan Equity and Mfs Research
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Mfs is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Fund and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research 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 Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Mfs Research go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Mfs Research
Assuming the 90 days horizon Jpmorgan Equity Fund is expected to generate 0.24 times more return on investment than Mfs Research. However, Jpmorgan Equity Fund is 4.16 times less risky than Mfs Research. It trades about -0.03 of its potential returns per unit of risk. Mfs Research Fund is currently generating about -0.18 per unit of risk. If you would invest 2,732 in Jpmorgan Equity Fund on September 12, 2024 and sell it today you would lose (9.00) from holding Jpmorgan Equity Fund or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Fund vs. Mfs Research Fund
Performance |
| Timeline |
| Jpmorgan Equity |
| Mfs Research |
Jpmorgan Equity and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Mfs Research
The main advantage of trading using opposite Jpmorgan Equity and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Mfs Research 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 Research will offset losses from the drop in Mfs Research's 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 |
| Mfs Research vs. Vanguard Total Stock | Mfs Research vs. Vanguard 500 Index | Mfs Research vs. Vanguard Total Stock | Mfs Research vs. Vanguard Total Stock |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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