Correlation Between Jpmorgan Strategic and Bts Tactical
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Strategic and Bts Tactical 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 Strategic and Bts Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Strategic Income and Bts Tactical Fixed, you can compare the effects of market volatilities on Jpmorgan Strategic and Bts Tactical 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 Strategic with a short position of Bts Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Strategic and Bts Tactical.
Diversification Opportunities for Jpmorgan Strategic and Bts Tactical
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Bts is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Strategic Income and Bts Tactical Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bts Tactical Fixed and Jpmorgan Strategic 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 Strategic Income are associated (or correlated) with Bts Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bts Tactical Fixed has no effect on the direction of Jpmorgan Strategic i.e., Jpmorgan Strategic and Bts Tactical go up and down completely randomly.
Pair Corralation between Jpmorgan Strategic and Bts Tactical
Assuming the 90 days horizon Jpmorgan Strategic Income is expected to generate 0.18 times more return on investment than Bts Tactical. However, Jpmorgan Strategic Income is 5.47 times less risky than Bts Tactical. It trades about 0.33 of its potential returns per unit of risk. Bts Tactical Fixed is currently generating about 0.04 per unit of risk. If you would invest 1,032 in Jpmorgan Strategic Income on September 3, 2024 and sell it today you would earn a total of 111.00 from holding Jpmorgan Strategic Income or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Strategic Income vs. Bts Tactical Fixed
Performance |
| Timeline |
| Jpmorgan Strategic Income |
| Bts Tactical Fixed |
Jpmorgan Strategic and Bts Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Strategic and Bts Tactical
The main advantage of trading using opposite Jpmorgan Strategic and Bts Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Strategic position performs unexpectedly, Bts Tactical 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 Bts Tactical will offset losses from the drop in Bts Tactical's long position.| Jpmorgan Strategic vs. Ultra Short Fixed Income | Jpmorgan Strategic vs. Limited Term Tax | Jpmorgan Strategic vs. Rationalpier 88 Convertible | Jpmorgan Strategic vs. The Fixed Income |
| Bts Tactical vs. Blackrock Strategic Opps | Bts Tactical vs. Blackrock Strategic Income | Bts Tactical vs. Jpmorgan Strategic Income | Bts Tactical vs. Jpmorgan Strategic Income |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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