Correlation Between Jpmorgan Equity and The Hartford
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and The Hartford 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 The Hartford 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 The Hartford Balanced, you can compare the effects of market volatilities on Jpmorgan Equity and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and The Hartford.
Diversification Opportunities for Jpmorgan Equity and The Hartford
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and The is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Fund and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and The Hartford go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and The Hartford
Assuming the 90 days horizon Jpmorgan Equity Fund is expected to generate 1.87 times more return on investment than The Hartford. However, Jpmorgan Equity is 1.87 times more volatile than The Hartford Balanced. It trades about 0.1 of its potential returns per unit of risk. The Hartford Balanced is currently generating about 0.05 per unit of risk. If you would invest 1,829 in Jpmorgan Equity Fund on August 24, 2024 and sell it today you would earn a total of 858.00 from holding Jpmorgan Equity Fund or generate 46.91% 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. The Hartford Balanced
Performance |
| Timeline |
| Jpmorgan Equity |
| Hartford Balanced |
Jpmorgan Equity and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and The Hartford
The main advantage of trading using opposite Jpmorgan Equity and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Jpmorgan Equity vs. John Hancock Variable | Jpmorgan Equity vs. Blue Chip Growth | Jpmorgan Equity vs. John Hancock Var | Jpmorgan Equity vs. Capital Appreciation Fund |
| The Hartford vs. The Hartford Balanced | The Hartford vs. The Hartford Balanced | The Hartford vs. Jpmorgan Growth Advantage | The Hartford vs. Jpmorgan Equity 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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