Correlation Between Jpmorgan Equity and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Baillie Gifford 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 Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Income and Baillie Gifford Eafe, you can compare the effects of market volatilities on Jpmorgan Equity and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Baillie Gifford.
Diversification Opportunities for Jpmorgan Equity and Baillie Gifford
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jpmorgan and Baillie is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Income and Baillie Gifford Eafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Eafe 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 Income are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Eafe has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Baillie Gifford go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Baillie Gifford
Assuming the 90 days horizon Jpmorgan Equity Income is expected to under-perform the Baillie Gifford. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Equity Income is 2.58 times less risky than Baillie Gifford. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Baillie Gifford Eafe is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,305 in Baillie Gifford Eafe on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Baillie Gifford Eafe or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Income vs. Baillie Gifford Eafe
Performance |
| Timeline |
| Jpmorgan Equity Income |
| Baillie Gifford Eafe |
Jpmorgan Equity and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Baillie Gifford
The main advantage of trading using opposite Jpmorgan Equity and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Jpmorgan Equity vs. Red Oak Technology | Jpmorgan Equity vs. Aam Select Income | Jpmorgan Equity vs. Rbb Fund | Jpmorgan Equity vs. Falcon Focus Scv |
| Baillie Gifford vs. Europacific Growth Fund | Baillie Gifford vs. SCOR PK | Baillie Gifford vs. Morningstar Unconstrained Allocation | Baillie Gifford vs. Thrivent High Yield |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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