Correlation Between Jpmorgan Income and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Income and Nebraska Municipal 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 Income and Nebraska Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Income Builder and Nebraska Municipal Fund, you can compare the effects of market volatilities on Jpmorgan Income and Nebraska Municipal 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 Income with a short position of Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Income and Nebraska Municipal.
Diversification Opportunities for Jpmorgan Income and Nebraska Municipal
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jpmorgan and Nebraska is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Income Builder and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal and Jpmorgan Income 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 Income Builder are associated (or correlated) with Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Jpmorgan Income i.e., Jpmorgan Income and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Jpmorgan Income and Nebraska Municipal
Assuming the 90 days horizon Jpmorgan Income Builder is expected to generate 1.21 times more return on investment than Nebraska Municipal. However, Jpmorgan Income is 1.21 times more volatile than Nebraska Municipal Fund. It trades about 0.13 of its potential returns per unit of risk. Nebraska Municipal Fund is currently generating about 0.07 per unit of risk. If you would invest 995.00 in Jpmorgan Income Builder on November 27, 2024 and sell it today you would earn a total of 8.00 from holding Jpmorgan Income Builder or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Income Builder vs. Nebraska Municipal Fund
Performance |
| Timeline |
| Jpmorgan Income Builder |
| Nebraska Municipal |
Jpmorgan Income and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Income and Nebraska Municipal
The main advantage of trading using opposite Jpmorgan Income and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Income position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| Jpmorgan Income vs. Voya Solution Conservative | Jpmorgan Income vs. Global Diversified Income | Jpmorgan Income vs. Tax Free Conservative Income | Jpmorgan Income vs. American Funds Conservative |
| Nebraska Municipal vs. Aqr Managed Futures | Nebraska Municipal vs. The Hartford Inflation | Nebraska Municipal vs. Ab Bond Inflation | Nebraska Municipal vs. The Hartford Inflation |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |