Correlation Between Jpmorgan High and Catalyst/cifc Floating
Can any of the company-specific risk be diversified away by investing in both Jpmorgan High and Catalyst/cifc Floating 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 High and Catalyst/cifc Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan High Yield and Catalystcifc Floating Rate, you can compare the effects of market volatilities on Jpmorgan High and Catalyst/cifc Floating 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 High with a short position of Catalyst/cifc Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan High and Catalyst/cifc Floating.
Diversification Opportunities for Jpmorgan High and Catalyst/cifc Floating
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Catalyst/cifc is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan High Yield and Catalystcifc Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/cifc Floating and Jpmorgan High 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 High Yield are associated (or correlated) with Catalyst/cifc Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/cifc Floating has no effect on the direction of Jpmorgan High i.e., Jpmorgan High and Catalyst/cifc Floating go up and down completely randomly.
Pair Corralation between Jpmorgan High and Catalyst/cifc Floating
Assuming the 90 days horizon Jpmorgan High is expected to generate 1.02 times less return on investment than Catalyst/cifc Floating. But when comparing it to its historical volatility, Jpmorgan High Yield is 1.02 times less risky than Catalyst/cifc Floating. It trades about 0.29 of its potential returns per unit of risk. Catalystcifc Floating Rate is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 915.00 in Catalystcifc Floating Rate on October 24, 2024 and sell it today you would earn a total of 10.00 from holding Catalystcifc Floating Rate or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan High Yield vs. Catalystcifc Floating Rate
Performance |
| Timeline |
| Jpmorgan High Yield |
| Catalyst/cifc Floating |
Jpmorgan High and Catalyst/cifc Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan High and Catalyst/cifc Floating
The main advantage of trading using opposite Jpmorgan High and Catalyst/cifc Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan High position performs unexpectedly, Catalyst/cifc Floating 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 Catalyst/cifc Floating will offset losses from the drop in Catalyst/cifc Floating's long position.| Jpmorgan High vs. Dreyfus High Yield | Jpmorgan High vs. Blackrock High Yield | Jpmorgan High vs. Federated High Yield | Jpmorgan High vs. Franklin High Yield |
| Catalyst/cifc Floating vs. Federated High Yield | Catalyst/cifc Floating vs. Multi Manager High Yield | Catalyst/cifc Floating vs. Pace High Yield | Catalyst/cifc Floating 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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