Correlation Between Lumia and Jpmorgan Mid
Can any of the company-specific risk be diversified away by investing in both Lumia 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 Lumia and Jpmorgan Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumia and Jpmorgan Mid Cap, you can compare the effects of market volatilities on Lumia 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 Lumia with a short position of Jpmorgan Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Jpmorgan Mid.
Diversification Opportunities for Lumia and Jpmorgan Mid
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumia and Jpmorgan is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lumia 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 Lumia 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 Lumia 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 Lumia i.e., Lumia and Jpmorgan Mid go up and down completely randomly.
Pair Corralation between Lumia and Jpmorgan Mid
Assuming the 90 days trading horizon Lumia is expected to under-perform the Jpmorgan Mid. In addition to that, Lumia is 2.63 times more volatile than Jpmorgan Mid Cap. It trades about -0.36 of its total potential returns per unit of risk. Jpmorgan Mid Cap is currently generating about -0.28 per unit of volatility. If you would invest 4,009 in Jpmorgan Mid Cap on October 12, 2024 and sell it today you would lose (531.00) from holding Jpmorgan Mid Cap or give up 13.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Lumia vs. Jpmorgan Mid Cap
Performance |
| Timeline |
| Lumia |
| Jpmorgan Mid Cap |
Lumia and Jpmorgan Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Jpmorgan Mid
The main advantage of trading using opposite Lumia and Jpmorgan Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia 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.The idea behind Lumia and Jpmorgan Mid Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jpmorgan Mid vs. Vanguard Small Cap Value | Jpmorgan Mid vs. Ultrasmall Cap Profund Ultrasmall Cap | Jpmorgan Mid vs. Great West Loomis Sayles | Jpmorgan Mid vs. Small Cap Value |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |