Correlation Between Jpmorgan and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Jpmorgan and Mainstay High 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 and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Fund and Mainstay High Yield, you can compare the effects of market volatilities on Jpmorgan and Mainstay High 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 with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan and Mainstay High.
Diversification Opportunities for Jpmorgan and Mainstay High
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jpmorgan and Mainstay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Fund and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Jpmorgan 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 Equity Fund are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Jpmorgan i.e., Jpmorgan and Mainstay High go up and down completely randomly.
Pair Corralation between Jpmorgan and Mainstay High
Assuming the 90 days horizon Jpmorgan Equity Fund is expected to generate 3.63 times more return on investment than Mainstay High. However, Jpmorgan is 3.63 times more volatile than Mainstay High Yield. It trades about 0.1 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.15 per unit of risk. If you would invest 1,827 in Jpmorgan Equity Fund on September 2, 2024 and sell it today you would earn a total of 918.00 from holding Jpmorgan Equity Fund or generate 50.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Fund vs. Mainstay High Yield
Performance |
| Timeline |
| Jpmorgan Equity |
| Mainstay High Yield |
Jpmorgan and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan and Mainstay High
The main advantage of trading using opposite Jpmorgan and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan position performs unexpectedly, Mainstay High 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| Jpmorgan vs. Health Care Fund | Jpmorgan vs. Health Biotchnology Portfolio | Jpmorgan vs. Tekla Healthcare Opportunities | Jpmorgan vs. Hartford Healthcare Hls |
| Mainstay High vs. Mainstay Tax Free | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap |
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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