Correlation Between Jpmorgan High and International Equity
Can any of the company-specific risk be diversified away by investing in both Jpmorgan High and International Equity 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 International Equity 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 International Equity Index, you can compare the effects of market volatilities on Jpmorgan High and International Equity 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 International Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan High and International Equity.
Diversification Opportunities for Jpmorgan High and International Equity
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and International is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan High Yield and International Equity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Equity 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 International Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Equity has no effect on the direction of Jpmorgan High i.e., Jpmorgan High and International Equity go up and down completely randomly.
Pair Corralation between Jpmorgan High and International Equity
Assuming the 90 days horizon Jpmorgan High is expected to generate 1.45 times less return on investment than International Equity. But when comparing it to its historical volatility, Jpmorgan High Yield is 3.1 times less risky than International Equity. It trades about 0.25 of its potential returns per unit of risk. International Equity Index is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,149 in International Equity Index on October 23, 2024 and sell it today you would earn a total of 15.00 from holding International Equity Index or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan High Yield vs. International Equity Index
Performance |
| Timeline |
| Jpmorgan High Yield |
| International Equity |
Jpmorgan High and International Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan High and International Equity
The main advantage of trading using opposite Jpmorgan High and International Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan High position performs unexpectedly, International Equity 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 International Equity will offset losses from the drop in International Equity's long position.| Jpmorgan High vs. Federated Hermes Conservative | Jpmorgan High vs. Stone Ridge Diversified | Jpmorgan High vs. Allianzgi Diversified Income | Jpmorgan High vs. Voya Solution Conservative |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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