Correlation Between Jpmorgan Short and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Short and Aqr Long-short 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 Short and Aqr Long-short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Short Duration and Aqr Long Short Equity, you can compare the effects of market volatilities on Jpmorgan Short and Aqr Long-short 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 Short with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Short and Aqr Long-short.
Diversification Opportunities for Jpmorgan Short and Aqr Long-short
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Aqr is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Short Duration and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short and Jpmorgan Short 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 Short Duration are associated (or correlated) with Aqr Long-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Jpmorgan Short i.e., Jpmorgan Short and Aqr Long-short go up and down completely randomly.
Pair Corralation between Jpmorgan Short and Aqr Long-short
Assuming the 90 days horizon Jpmorgan Short Duration is expected to under-perform the Aqr Long-short. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Short Duration is 4.36 times less risky than Aqr Long-short. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Aqr Long Short Equity is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 1,562 in Aqr Long Short Equity on August 30, 2024 and sell it today you would earn a total of 76.00 from holding Aqr Long Short Equity or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Short Duration vs. Aqr Long Short Equity
Performance |
| Timeline |
| Jpmorgan Short Duration |
| Aqr Long Short |
Jpmorgan Short and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Short and Aqr Long-short
The main advantage of trading using opposite Jpmorgan Short and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Short position performs unexpectedly, Aqr Long-short 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 Aqr Long-short will offset losses from the drop in Aqr Long-short's long position.| Jpmorgan Short vs. Lord Abbett Diversified | Jpmorgan Short vs. Tax Managed Mid Small | Jpmorgan Short vs. Jhancock Diversified Macro | Jpmorgan Short vs. Massmutual Premier Diversified |
| Aqr Long-short vs. Ab Select Longshort | Aqr Long-short vs. Angel Oak Ultrashort | Aqr Long-short vs. Locorr Longshort Modities | Aqr Long-short vs. Astor Longshort Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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