Correlation Between Jpmorgan Trust and J Hancock
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Trust and J Hancock 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 Trust and J Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Trust I and J Hancock Ii, you can compare the effects of market volatilities on Jpmorgan Trust and J Hancock 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 Trust with a short position of J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Trust and J Hancock.
Diversification Opportunities for Jpmorgan Trust and J Hancock
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and JROUX is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Trust I and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii and Jpmorgan Trust 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 Trust I are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of Jpmorgan Trust i.e., Jpmorgan Trust and J Hancock go up and down completely randomly.
Pair Corralation between Jpmorgan Trust and J Hancock
If you would invest 1,393 in J Hancock Ii on September 1, 2024 and sell it today you would earn a total of 63.00 from holding J Hancock Ii or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Trust I vs. J Hancock Ii
Performance |
| Timeline |
| Jpmorgan Trust I |
| J Hancock Ii |
Jpmorgan Trust and J Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Trust and J Hancock
The main advantage of trading using opposite Jpmorgan Trust and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Trust position performs unexpectedly, J Hancock 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 J Hancock will offset losses from the drop in J Hancock's long position.| Jpmorgan Trust vs. Alpsalerian Energy Infrastructure | Jpmorgan Trust vs. Jennison Natural Resources | Jpmorgan Trust vs. Energy Services Fund | Jpmorgan Trust vs. Hennessy Bp Energy |
| J Hancock vs. Meeder Funds | J Hancock vs. Franklin Government Money | J Hancock vs. Jpmorgan Trust I | J Hancock vs. Legg Mason Partners |
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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