Correlation Between Mainstay High and Jpmorgan Core
Can any of the company-specific risk be diversified away by investing in both Mainstay High and Jpmorgan Core 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 High and Jpmorgan Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay High Yield and Jpmorgan E Plus, you can compare the effects of market volatilities on Mainstay High and Jpmorgan Core 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 High with a short position of Jpmorgan Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Jpmorgan Core.
Diversification Opportunities for Mainstay High and Jpmorgan Core
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Jpmorgan is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield and Jpmorgan E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E Plus and Mainstay High 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 High Yield are associated (or correlated) with Jpmorgan Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Plus has no effect on the direction of Mainstay High i.e., Mainstay High and Jpmorgan Core go up and down completely randomly.
Pair Corralation between Mainstay High and Jpmorgan Core
Assuming the 90 days horizon Mainstay High Yield is expected to generate 0.45 times more return on investment than Jpmorgan Core. However, Mainstay High Yield is 2.21 times less risky than Jpmorgan Core. It trades about 0.15 of its potential returns per unit of risk. Jpmorgan E Plus is currently generating about -0.03 per unit of risk. If you would invest 516.00 in Mainstay High Yield on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Mainstay High Yield or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay High Yield vs. Jpmorgan E Plus
Performance |
| Timeline |
| Mainstay High Yield |
| Jpmorgan E Plus |
Mainstay High and Jpmorgan Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Jpmorgan Core
The main advantage of trading using opposite Mainstay High and Jpmorgan Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High position performs unexpectedly, Jpmorgan Core 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 Core will offset losses from the drop in Jpmorgan Core's long position.| Mainstay High vs. Mainstay Tax Free | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap | Mainstay High vs. Mainstay Large Cap |
| Jpmorgan Core vs. Ultra Short Fixed Income | Jpmorgan Core vs. Us Strategic Equity | Jpmorgan Core vs. Icon Equity Income | Jpmorgan Core vs. Us Vector Equity |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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