Correlation Between Jpmorgan High and Mfs International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan High and Mfs International 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 High and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan High Yield and Mfs International Value, you can compare the effects of market volatilities on Jpmorgan High and Mfs International 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 High with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan High and Mfs International.
Diversification Opportunities for Jpmorgan High and Mfs International
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Mfs is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan High Yield and Mfs International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Value and Jpmorgan 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 Jpmorgan High Yield are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Value has no effect on the direction of Jpmorgan High i.e., Jpmorgan High and Mfs International go up and down completely randomly.
Pair Corralation between Jpmorgan High and Mfs International
Assuming the 90 days horizon Jpmorgan High Yield is expected to generate 0.28 times more return on investment than Mfs International. However, Jpmorgan High Yield is 3.51 times less risky than Mfs International. It trades about 0.18 of its potential returns per unit of risk. Mfs International Value is currently generating about 0.05 per unit of risk. If you would invest 569.00 in Jpmorgan High Yield on August 25, 2024 and sell it today you would earn a total of 85.00 from holding Jpmorgan High Yield or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan High Yield vs. Mfs International Value
Performance |
| Timeline |
| Jpmorgan High Yield |
| Mfs International Value |
Jpmorgan High and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan High and Mfs International
The main advantage of trading using opposite Jpmorgan High and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan High position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International's long position.| Jpmorgan High vs. Allianzgi Technology Fund | Jpmorgan High vs. Technology Ultrasector Profund | Jpmorgan High vs. Hennessy Technology Fund | Jpmorgan High vs. Dreyfus Technology Growth |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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