Correlation Between Federated Kaufmann and Jpmorgan Mid
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Jpmorgan Mid 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 Federated Kaufmann and Jpmorgan Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Large and Jpmorgan Mid Cap, you can compare the effects of market volatilities on Federated Kaufmann and Jpmorgan Mid 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 Federated Kaufmann with a short position of Jpmorgan Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Jpmorgan Mid.
Diversification Opportunities for Federated Kaufmann and Jpmorgan Mid
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FEDERATED and Jpmorgan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large and Jpmorgan Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Mid Cap and Federated Kaufmann 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 Federated Kaufmann Large are associated (or correlated) with Jpmorgan Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Mid Cap has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Jpmorgan Mid go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Jpmorgan Mid
Assuming the 90 days horizon Federated Kaufmann Large is expected to generate 0.98 times more return on investment than Jpmorgan Mid. However, Federated Kaufmann Large is 1.02 times less risky than Jpmorgan Mid. It trades about 0.38 of its potential returns per unit of risk. Jpmorgan Mid Cap is currently generating about 0.36 per unit of risk. If you would invest 1,862 in Federated Kaufmann Large on September 1, 2024 and sell it today you would earn a total of 137.00 from holding Federated Kaufmann Large or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Jpmorgan Mid Cap
Performance |
| Timeline |
| Federated Kaufmann Large |
| Jpmorgan Mid Cap |
Federated Kaufmann and Jpmorgan Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Jpmorgan Mid
The main advantage of trading using opposite Federated Kaufmann and Jpmorgan Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Jpmorgan Mid 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 Jpmorgan Mid will offset losses from the drop in Jpmorgan Mid's long position.| Federated Kaufmann vs. Federated Emerging Market | Federated Kaufmann vs. Federated Mdt All | Federated Kaufmann vs. Federated Mdt Balanced | Federated Kaufmann vs. Federated Global Allocation |
| Jpmorgan Mid vs. Touchstone Large Cap | Jpmorgan Mid vs. Goldman Sachs Large | Jpmorgan Mid vs. Aqr Large Cap | Jpmorgan Mid vs. Federated Kaufmann Large |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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