Correlation Between Jpmorgan Diversified and Fidelity China
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Diversified and Fidelity China 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 Diversified and Fidelity China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Diversified Fund and Fidelity China Region, you can compare the effects of market volatilities on Jpmorgan Diversified and Fidelity China 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 Diversified with a short position of Fidelity China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Diversified and Fidelity China.
Diversification Opportunities for Jpmorgan Diversified and Fidelity China
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jpmorgan and Fidelity is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Diversified Fund and Fidelity China Region in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity China Region and Jpmorgan Diversified 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 Diversified Fund are associated (or correlated) with Fidelity China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity China Region has no effect on the direction of Jpmorgan Diversified i.e., Jpmorgan Diversified and Fidelity China go up and down completely randomly.
Pair Corralation between Jpmorgan Diversified and Fidelity China
Assuming the 90 days horizon Jpmorgan Diversified is expected to generate 1.13 times less return on investment than Fidelity China. But when comparing it to its historical volatility, Jpmorgan Diversified Fund is 2.67 times less risky than Fidelity China. It trades about 0.1 of its potential returns per unit of risk. Fidelity China Region is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,687 in Fidelity China Region on September 13, 2024 and sell it today you would earn a total of 239.00 from holding Fidelity China Region or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Diversified Fund vs. Fidelity China Region
Performance |
| Timeline |
| Jpmorgan Diversified |
| Fidelity China Region |
Jpmorgan Diversified and Fidelity China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Diversified and Fidelity China
The main advantage of trading using opposite Jpmorgan Diversified and Fidelity China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Diversified position performs unexpectedly, Fidelity China 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 Fidelity China will offset losses from the drop in Fidelity China's long position.| Jpmorgan Diversified vs. Amg Managers Montag | Jpmorgan Diversified vs. Clearbridge Appreciation Fund | Jpmorgan Diversified vs. Clearbridge Large Cap | Jpmorgan Diversified vs. Aquagold International |
| Fidelity China vs. Health Biotchnology Portfolio | Fidelity China vs. Alger Health Sciences | Fidelity China vs. The Gabelli Healthcare | Fidelity China vs. Blackrock Health Sciences |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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