Correlation Between JPMorgan Fundamental and Matthews China
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and Matthews China 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 Fundamental and Matthews China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Fundamental Data and Matthews China Discovery, you can compare the effects of market volatilities on JPMorgan Fundamental and Matthews China 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 Fundamental with a short position of Matthews China. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and Matthews China.
Diversification Opportunities for JPMorgan Fundamental and Matthews China
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between JPMorgan and Matthews is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and Matthews China Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews China Discovery and JPMorgan Fundamental 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 Fundamental Data are associated (or correlated) with Matthews China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews China Discovery has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and Matthews China go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and Matthews China
Given the investment horizon of 90 days JPMorgan Fundamental Data is expected to generate 0.33 times more return on investment than Matthews China. However, JPMorgan Fundamental Data is 3.07 times less risky than Matthews China. It trades about 0.09 of its potential returns per unit of risk. Matthews China Discovery is currently generating about -0.04 per unit of risk. If you would invest 5,469 in JPMorgan Fundamental Data on November 1, 2024 and sell it today you would earn a total of 291.00 from holding JPMorgan Fundamental Data or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Fundamental Data vs. Matthews China Discovery
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| Matthews China Discovery |
JPMorgan Fundamental and Matthews China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and Matthews China
The main advantage of trading using opposite JPMorgan Fundamental and Matthews China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, Matthews China 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 Matthews China will offset losses from the drop in Matthews China's long position.| JPMorgan Fundamental vs. Vanguard Mid Cap Index | JPMorgan Fundamental vs. SPDR SP 400 | JPMorgan Fundamental vs. SPDR SP 400 | JPMorgan Fundamental vs. Direxion Daily Mid |
| Matthews China vs. Matthews Emerging Markets | Matthews China vs. Morgan Stanley Pathway | Matthews China vs. Neuberger Berman ETF | Matthews China vs. Fidelity Small 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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