Correlation Between Jpmorgan Value and Kellner Merger
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Value and Kellner Merger 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 Value and Kellner Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Value Advantage and Kellner Merger Fund, you can compare the effects of market volatilities on Jpmorgan Value and Kellner Merger 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 Value with a short position of Kellner Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Value and Kellner Merger.
Diversification Opportunities for Jpmorgan Value and Kellner Merger
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jpmorgan and Kellner is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Value Advantage and Kellner Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellner Merger and Jpmorgan Value 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 Value Advantage are associated (or correlated) with Kellner Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellner Merger has no effect on the direction of Jpmorgan Value i.e., Jpmorgan Value and Kellner Merger go up and down completely randomly.
Pair Corralation between Jpmorgan Value and Kellner Merger
Assuming the 90 days horizon Jpmorgan Value Advantage is expected to under-perform the Kellner Merger. In addition to that, Jpmorgan Value is 5.62 times more volatile than Kellner Merger Fund. It trades about -0.13 of its total potential returns per unit of risk. Kellner Merger Fund is currently generating about 0.0 per unit of volatility. If you would invest 1,094 in Kellner Merger Fund on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Kellner Merger Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Value Advantage vs. Kellner Merger Fund
Performance |
| Timeline |
| Jpmorgan Value Advantage |
| Kellner Merger |
Jpmorgan Value and Kellner Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Value and Kellner Merger
The main advantage of trading using opposite Jpmorgan Value and Kellner Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Value position performs unexpectedly, Kellner Merger 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 Kellner Merger will offset losses from the drop in Kellner Merger's long position.| Jpmorgan Value vs. Jpmorgan Mid Cap | Jpmorgan Value vs. Jpmorgan Equity Fund | Jpmorgan Value vs. Massachusetts Investors Trust | Jpmorgan Value vs. Causeway International Value |
| Kellner Merger vs. Rational Strategic Allocation | Kellner Merger vs. T Rowe Price | Kellner Merger vs. Jhancock Disciplined Value | Kellner Merger vs. Washington Mutual Investors |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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