Correlation Between Jpmorgan Equity and Health Care
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Health Care 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 Equity and Health Care 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 Health Care Fund, you can compare the effects of market volatilities on Jpmorgan Equity and Health Care 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 Equity with a short position of Health Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Health Care.
Diversification Opportunities for Jpmorgan Equity and Health Care
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jpmorgan and Health is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Fund and Health Care Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health Care Fund and Jpmorgan Equity 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 Health Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Care Fund has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Health Care go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Health Care
Assuming the 90 days horizon Jpmorgan Equity Fund is expected to generate 1.09 times more return on investment than Health Care. However, Jpmorgan Equity is 1.09 times more volatile than Health Care Fund. It trades about 0.11 of its potential returns per unit of risk. Health Care Fund is currently generating about 0.03 per unit of risk. If you would invest 2,027 in Jpmorgan Equity Fund on September 12, 2024 and sell it today you would earn a total of 721.00 from holding Jpmorgan Equity Fund or generate 35.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Fund vs. Health Care Fund
Performance |
| Timeline |
| Jpmorgan Equity |
| Health Care Fund |
Jpmorgan Equity and Health Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Health Care
The main advantage of trading using opposite Jpmorgan Equity and Health Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Health Care 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 Health Care will offset losses from the drop in Health Care's long position.| Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 |
| Health Care vs. Health Biotchnology Portfolio | Health Care vs. Health Care Fund | Health Care vs. Health Care Fund | Health Care vs. Health Care Fund |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |