Correlation Between Jp Morgan and Highland Longshort
Can any of the company-specific risk be diversified away by investing in both Jp Morgan and Highland Longshort 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 Jp Morgan and Highland Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jp Morgan Smartretirement and Highland Longshort Healthcare, you can compare the effects of market volatilities on Jp Morgan and Highland Longshort 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 Jp Morgan with a short position of Highland Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jp Morgan and Highland Longshort.
Diversification Opportunities for Jp Morgan and Highland Longshort
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JTSQX and Highland is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jp Morgan Smartretirement and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Longshort and Jp Morgan 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 Jp Morgan Smartretirement are associated (or correlated) with Highland Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Longshort has no effect on the direction of Jp Morgan i.e., Jp Morgan and Highland Longshort go up and down completely randomly.
Pair Corralation between Jp Morgan and Highland Longshort
Assuming the 90 days horizon Jp Morgan is expected to generate 1.31 times less return on investment than Highland Longshort. In addition to that, Jp Morgan is 3.36 times more volatile than Highland Longshort Healthcare. It trades about 0.06 of its total potential returns per unit of risk. Highland Longshort Healthcare is currently generating about 0.26 per unit of volatility. If you would invest 1,644 in Highland Longshort Healthcare on November 7, 2024 and sell it today you would earn a total of 18.00 from holding Highland Longshort Healthcare or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jp Morgan Smartretirement vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Jp Morgan Smartretirement |
| Highland Longshort |
Jp Morgan and Highland Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jp Morgan and Highland Longshort
The main advantage of trading using opposite Jp Morgan and Highland Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jp Morgan position performs unexpectedly, Highland Longshort 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 Highland Longshort will offset losses from the drop in Highland Longshort's long position.| Jp Morgan vs. Glg Intl Small | Jp Morgan vs. Smallcap Fund Fka | Jp Morgan vs. Rbc Small Cap | Jp Morgan vs. Praxis Small Cap |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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