Correlation Between Jpmorgan High and Mainstay
Can any of the company-specific risk be diversified away by investing in both Jpmorgan High and Mainstay 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 Mainstay 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 Mainstay Sp 500, you can compare the effects of market volatilities on Jpmorgan High and Mainstay 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 Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan High and Mainstay.
Diversification Opportunities for Jpmorgan High and Mainstay
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and Mainstay is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan High Yield and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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 Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Jpmorgan High i.e., Jpmorgan High and Mainstay go up and down completely randomly.
Pair Corralation between Jpmorgan High and Mainstay
Assuming the 90 days horizon Jpmorgan High Yield is expected to generate 0.15 times more return on investment than Mainstay. However, Jpmorgan High Yield is 6.69 times less risky than Mainstay. It trades about 0.08 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about -0.12 per unit of risk. If you would invest 661.00 in Jpmorgan High Yield on September 15, 2024 and sell it today you would earn a total of 2.00 from holding Jpmorgan High Yield or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan High Yield vs. Mainstay Sp 500
Performance |
| Timeline |
| Jpmorgan High Yield |
| Mainstay Sp 500 |
Jpmorgan High and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan High and Mainstay
The main advantage of trading using opposite Jpmorgan High and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan High position performs unexpectedly, Mainstay 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 Mainstay will offset losses from the drop in Mainstay's long position.| Jpmorgan High vs. Jpmorgan Smartretirement 2035 | Jpmorgan High vs. Jpmorgan Smartretirement 2035 | Jpmorgan High vs. Jpmorgan Smartretirement 2035 | Jpmorgan High vs. Jpmorgan Smartretirement 2035 |
| Mainstay vs. Artisan High Income | Mainstay vs. T Rowe Price | Mainstay vs. Neuberger Berman Income | Mainstay 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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