Correlation Between Jpmorgan High and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Jpmorgan High and Oklahoma 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 High and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan High Yield and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Jpmorgan High and Oklahoma 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 High with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan High and Oklahoma Municipal.
Diversification Opportunities for Jpmorgan High and Oklahoma Municipal
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jpmorgan and Oklahoma is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan High Yield and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Jpmorgan High 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 High Yield are associated (or correlated) with Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Jpmorgan High i.e., Jpmorgan High and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Jpmorgan High and Oklahoma Municipal
Assuming the 90 days horizon Jpmorgan High Yield is expected to generate 1.11 times more return on investment than Oklahoma Municipal. However, Jpmorgan High is 1.11 times more volatile than Oklahoma Municipal Fund. It trades about 0.13 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.03 per unit of risk. If you would invest 562.00 in Jpmorgan High Yield on September 3, 2024 and sell it today you would earn a total of 98.00 from holding Jpmorgan High Yield or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan High Yield vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Jpmorgan High Yield |
| Oklahoma Municipal |
Jpmorgan High and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan High and Oklahoma Municipal
The main advantage of trading using opposite Jpmorgan High and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan High position performs unexpectedly, Oklahoma 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Jpmorgan High vs. Goldman Sachs Financial | Jpmorgan High vs. Prudential Financial Services | Jpmorgan High vs. John Hancock Financial | Jpmorgan High vs. Fidelity Advisor Financial |
| Oklahoma Municipal vs. Limited Term Tax | Oklahoma Municipal vs. Calvert Short Duration | Oklahoma Municipal vs. Federated Short Term Income | Oklahoma Municipal vs. Jhancock Short Duration |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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