Correlation Between Jpmorgan Equity and General Money
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and General Money 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 Equity and General Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Index and General Money Market, you can compare the effects of market volatilities on Jpmorgan Equity and General Money 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 Equity with a short position of General Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and General Money.
Diversification Opportunities for Jpmorgan Equity and General Money
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and General is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Index and General Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Money Market and Jpmorgan Equity 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 Equity Index are associated (or correlated) with General Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Money Market has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and General Money go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and General Money
If you would invest 8,868 in Jpmorgan Equity Index on September 13, 2024 and sell it today you would earn a total of 153.00 from holding Jpmorgan Equity Index or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jpmorgan Equity Index vs. General Money Market
Performance |
| Timeline |
| Jpmorgan Equity Index |
| General Money Market |
Jpmorgan Equity and General Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and General Money
The main advantage of trading using opposite Jpmorgan Equity and General Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, General Money 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 General Money will offset losses from the drop in General Money's long position.| Jpmorgan Equity vs. Rationalpier 88 Convertible | Jpmorgan Equity vs. Putnam Convertible Incm Gwth | Jpmorgan Equity vs. Allianzgi Convertible Income | Jpmorgan Equity vs. Virtus Convertible |
| General Money vs. Putnam Money Market | General Money vs. Cref Money Market | General Money vs. Ab Government Exchange | General Money vs. Money Market Obligations |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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