Correlation Between Jpmorgan High and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Jpmorgan High and Massmutual Select 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 Massmutual Select 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 Massmutual Select Total, you can compare the effects of market volatilities on Jpmorgan High and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan High and Massmutual Select.
Diversification Opportunities for Jpmorgan High and Massmutual Select
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Massmutual is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan High Yield and Massmutual Select Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Total 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Total has no effect on the direction of Jpmorgan High i.e., Jpmorgan High and Massmutual Select go up and down completely randomly.
Pair Corralation between Jpmorgan High and Massmutual Select
Assuming the 90 days horizon Jpmorgan High Yield is expected to generate 0.46 times more return on investment than Massmutual Select. However, Jpmorgan High Yield is 2.15 times less risky than Massmutual Select. It trades about 0.2 of its potential returns per unit of risk. Massmutual Select Total is currently generating about 0.03 per unit of risk. If you would invest 603.00 in Jpmorgan High Yield on September 14, 2024 and sell it today you would earn a total of 60.00 from holding Jpmorgan High Yield or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan High Yield vs. Massmutual Select Total
Performance |
| Timeline |
| Jpmorgan High Yield |
| Massmutual Select Total |
Jpmorgan High and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan High and Massmutual Select
The main advantage of trading using opposite Jpmorgan High and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan High position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Jpmorgan High vs. Rbc Emerging Markets | Jpmorgan High vs. Siit Emerging Markets | Jpmorgan High vs. Aqr Long Short Equity | Jpmorgan High vs. Pnc Emerging Markets |
| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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