Correlation Between Jpmorgan Value and Kopernik International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Value and Kopernik 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 Value and Kopernik International 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 Kopernik International Fund, you can compare the effects of market volatilities on Jpmorgan Value and Kopernik 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 Value with a short position of Kopernik International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Value and Kopernik International.
Diversification Opportunities for Jpmorgan Value and Kopernik International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Kopernik is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Value Advantage and Kopernik International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik International 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 Kopernik International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik International has no effect on the direction of Jpmorgan Value i.e., Jpmorgan Value and Kopernik International go up and down completely randomly.
Pair Corralation between Jpmorgan Value and Kopernik International
Assuming the 90 days horizon Jpmorgan Value Advantage is expected to under-perform the Kopernik International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Value Advantage is 1.11 times less risky than Kopernik International. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Kopernik International Fund is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,408 in Kopernik International Fund on September 12, 2024 and sell it today you would lose (21.00) from holding Kopernik International Fund or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jpmorgan Value Advantage vs. Kopernik International Fund
Performance |
| Timeline |
| Jpmorgan Value Advantage |
| Kopernik International |
Jpmorgan Value and Kopernik International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Value and Kopernik International
The main advantage of trading using opposite Jpmorgan Value and Kopernik International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Value position performs unexpectedly, Kopernik 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 Kopernik International will offset losses from the drop in Kopernik International'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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |