Correlation Between Lumia and Jpmorgan High
Can any of the company-specific risk be diversified away by investing in both Lumia and Jpmorgan High 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 High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumia and Jpmorgan High Yield, you can compare the effects of market volatilities on Lumia and Jpmorgan High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Jpmorgan High.
Diversification Opportunities for Lumia and Jpmorgan High
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lumia and Jpmorgan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Jpmorgan High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan High Yield has no effect on the direction of Lumia i.e., Lumia and Jpmorgan High go up and down completely randomly.
Pair Corralation between Lumia and Jpmorgan High
Assuming the 90 days trading horizon Lumia is expected to generate 179.42 times more return on investment than Jpmorgan High. However, Lumia is 179.42 times more volatile than Jpmorgan High Yield. It trades about 0.04 of its potential returns per unit of risk. Jpmorgan High Yield is currently generating about 0.15 per unit of risk. If you would invest 0.00 in Lumia on November 2, 2024 and sell it today you would earn a total of 91.00 from holding Lumia or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.1% |
| Values | Daily Returns |
Lumia vs. Jpmorgan High Yield
Performance |
| Timeline |
| Lumia |
| Jpmorgan High Yield |
Lumia and Jpmorgan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Jpmorgan High
The main advantage of trading using opposite Lumia and Jpmorgan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Jpmorgan High 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 High will offset losses from the drop in Jpmorgan High's long position.The idea behind Lumia and Jpmorgan High Yield 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 High vs. Texton Property | Jpmorgan High vs. Neuberger Berman Real | Jpmorgan High vs. Nexpoint Real Estate | Jpmorgan High vs. Columbia Real Estate |
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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