Correlation Between Mfs International and Jpmorgan
Can any of the company-specific risk be diversified away by investing in both Mfs International and Jpmorgan 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 Mfs International and Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International Growth and Jpmorgan Large Cap, you can compare the effects of market volatilities on Mfs International and Jpmorgan 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 Mfs International with a short position of Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Jpmorgan.
Diversification Opportunities for Mfs International and Jpmorgan
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mfs and Jpmorgan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Growth and Jpmorgan Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Large Cap and Mfs International 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 Mfs International Growth are associated (or correlated) with Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Large Cap has no effect on the direction of Mfs International i.e., Mfs International and Jpmorgan go up and down completely randomly.
Pair Corralation between Mfs International and Jpmorgan
Assuming the 90 days horizon Mfs International Growth is expected to under-perform the Jpmorgan. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mfs International Growth is 1.11 times less risky than Jpmorgan. The mutual fund trades about -0.24 of its potential returns per unit of risk. The Jpmorgan Large Cap is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,253 in Jpmorgan Large Cap on August 29, 2024 and sell it today you would earn a total of 67.00 from holding Jpmorgan Large Cap or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs International Growth vs. Jpmorgan Large Cap
Performance |
| Timeline |
| Mfs International Growth |
| Jpmorgan Large Cap |
Mfs International and Jpmorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Jpmorgan
The main advantage of trading using opposite Mfs International and Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International position performs unexpectedly, Jpmorgan 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 will offset losses from the drop in Jpmorgan's long position.| Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund |
| Jpmorgan vs. Vanguard Total Stock | Jpmorgan vs. Vanguard 500 Index | Jpmorgan vs. Vanguard Total Stock | Jpmorgan vs. Vanguard Total Stock |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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