Correlation Between Mainstay Candriam and Jpmorgan Small
Can any of the company-specific risk be diversified away by investing in both Mainstay Candriam and Jpmorgan Small 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 Mainstay Candriam and Jpmorgan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Candriam Emerging and Jpmorgan Small Cap, you can compare the effects of market volatilities on Mainstay Candriam and Jpmorgan Small 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 Mainstay Candriam with a short position of Jpmorgan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Candriam and Jpmorgan Small.
Diversification Opportunities for Mainstay Candriam and Jpmorgan Small
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Jpmorgan is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Candriam Emerging and Jpmorgan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Small Cap and Mainstay Candriam 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 Mainstay Candriam Emerging are associated (or correlated) with Jpmorgan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Small Cap has no effect on the direction of Mainstay Candriam i.e., Mainstay Candriam and Jpmorgan Small go up and down completely randomly.
Pair Corralation between Mainstay Candriam and Jpmorgan Small
Assuming the 90 days horizon Mainstay Candriam Emerging is expected to under-perform the Jpmorgan Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay Candriam Emerging is 2.09 times less risky than Jpmorgan Small. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Jpmorgan Small Cap is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,191 in Jpmorgan Small Cap on September 4, 2024 and sell it today you would earn a total of 189.00 from holding Jpmorgan Small Cap or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Candriam Emerging vs. Jpmorgan Small Cap
Performance |
| Timeline |
| Mainstay Candriam |
| Jpmorgan Small Cap |
Mainstay Candriam and Jpmorgan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Candriam and Jpmorgan Small
The main advantage of trading using opposite Mainstay Candriam and Jpmorgan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Candriam position performs unexpectedly, Jpmorgan Small 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 Small will offset losses from the drop in Jpmorgan Small's long position.| Mainstay Candriam vs. Gmo High Yield | Mainstay Candriam vs. Ppm High Yield | Mainstay Candriam vs. Calvert High Yield | Mainstay Candriam vs. Lord Abbett High |
| Jpmorgan Small vs. Jpmorgan Smartretirement 2035 | Jpmorgan Small vs. Jpmorgan Smartretirement 2035 | Jpmorgan Small vs. Jpmorgan Smartretirement 2035 | Jpmorgan Small vs. Jpmorgan Smartretirement 2035 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |