Correlation Between Jpmorgan Core and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Core and Catalyst/millburn 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 Core and Catalyst/millburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan E Plus and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Jpmorgan Core and Catalyst/millburn 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 Core with a short position of Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Core and Catalyst/millburn.
Diversification Opportunities for Jpmorgan Core and Catalyst/millburn
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jpmorgan and Catalyst/millburn is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan E Plus and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge and Jpmorgan Core 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 E Plus are associated (or correlated) with Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Jpmorgan Core i.e., Jpmorgan Core and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Jpmorgan Core and Catalyst/millburn
Assuming the 90 days horizon Jpmorgan Core is expected to generate 4.6 times less return on investment than Catalyst/millburn. But when comparing it to its historical volatility, Jpmorgan E Plus is 1.95 times less risky than Catalyst/millburn. It trades about 0.1 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,861 in Catalystmillburn Hedge Strategy on October 23, 2024 and sell it today you would earn a total of 106.00 from holding Catalystmillburn Hedge Strategy or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Jpmorgan E Plus vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Jpmorgan E Plus |
| Catalystmillburn Hedge |
Jpmorgan Core and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Core and Catalyst/millburn
The main advantage of trading using opposite Jpmorgan Core and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Core position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Jpmorgan Core vs. Qs Large Cap | Jpmorgan Core vs. Tax Managed Large Cap | Jpmorgan Core vs. Tiaa Cref Large Cap Value | Jpmorgan Core vs. Vest Large Cap |
| Catalyst/millburn vs. Barings High Yield | Catalyst/millburn vs. Nuveen Strategic Municipal | Catalyst/millburn vs. Bbh Intermediate Municipal | Catalyst/millburn vs. Leader Short Term Bond |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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