Correlation Between Floating Rate and Jpmorgan Floating
Can any of the company-specific risk be diversified away by investing in both Floating Rate and Jpmorgan 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 Floating Rate and Jpmorgan Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Floating Rate Fund and Jpmorgan Floating Rate, you can compare the effects of market volatilities on Floating Rate and Jpmorgan 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 Floating Rate with a short position of Jpmorgan Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Floating Rate and Jpmorgan Floating.
Diversification Opportunities for Floating Rate and Jpmorgan Floating
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Floating and Jpmorgan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Floating Rate Fund and Jpmorgan Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Floating Rate and Floating Rate 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 Floating Rate Fund are associated (or correlated) with Jpmorgan Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Floating Rate has no effect on the direction of Floating Rate i.e., Floating Rate and Jpmorgan Floating go up and down completely randomly.
Pair Corralation between Floating Rate and Jpmorgan Floating
Assuming the 90 days horizon Floating Rate is expected to generate 1.44 times less return on investment than Jpmorgan Floating. But when comparing it to its historical volatility, Floating Rate Fund is 2.8 times less risky than Jpmorgan Floating. It trades about 0.22 of its potential returns per unit of risk. Jpmorgan Floating Rate is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Jpmorgan Floating Rate on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Jpmorgan Floating Rate or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Floating Rate Fund vs. Jpmorgan Floating Rate
Performance |
| Timeline |
| Floating Rate |
| Jpmorgan Floating Rate |
Floating Rate and Jpmorgan Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Floating Rate and Jpmorgan Floating
The main advantage of trading using opposite Floating Rate and Jpmorgan Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Floating Rate position performs unexpectedly, Jpmorgan 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 Jpmorgan Floating will offset losses from the drop in Jpmorgan Floating's long position.| Floating Rate vs. Floating Rate Fund | Floating Rate vs. Floating Rate Fund | Floating Rate vs. Floating Rate Fund | Floating Rate vs. Floating Rate Fund |
| Jpmorgan Floating vs. Oppenheimer Senior Floating | Jpmorgan Floating vs. Oppenheimer Senior Floating | Jpmorgan Floating vs. Floating Rate Fund | Jpmorgan Floating vs. Floating Rate Fund |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |