Correlation Between Jpmorgan and Thornburg International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan and Thornburg International 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 Thornburg International 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 Thornburg International Value, you can compare the effects of market volatilities on Jpmorgan and Thornburg International 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 Thornburg International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan and Thornburg International.
Diversification Opportunities for Jpmorgan and Thornburg International
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Thornburg is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Fund and Thornburg International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International 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 Thornburg International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg International has no effect on the direction of Jpmorgan i.e., Jpmorgan and Thornburg International go up and down completely randomly.
Pair Corralation between Jpmorgan and Thornburg International
Assuming the 90 days horizon Jpmorgan Equity Fund is expected to generate 1.19 times more return on investment than Thornburg International. However, Jpmorgan is 1.19 times more volatile than Thornburg International Value. It trades about 0.06 of its potential returns per unit of risk. Thornburg International Value is currently generating about 0.06 per unit of risk. If you would invest 2,219 in Jpmorgan Equity Fund on November 3, 2024 and sell it today you would earn a total of 317.00 from holding Jpmorgan Equity Fund or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Fund vs. Thornburg International Value
Performance |
| Timeline |
| Jpmorgan Equity |
| Thornburg International |
Jpmorgan and Thornburg International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan and Thornburg International
The main advantage of trading using opposite Jpmorgan and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan position performs unexpectedly, Thornburg International 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 Thornburg International will offset losses from the drop in Thornburg International's long position.| Jpmorgan vs. Jpmorgan International Value | Jpmorgan vs. Jpmorgan Mid Cap | Jpmorgan vs. Jpmorgan Emerging Markets | Jpmorgan vs. Jpmorgan High Yield |
| Thornburg International vs. Jpmorgan Mid Cap | Thornburg International vs. Jpmorgan International Value | Thornburg International vs. Jpmorgan Equity Fund | Thornburg International vs. Jpmorgan High Yield |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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