Correlation Between Jpmorgan Equity and Lazard International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Lazard 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 Equity and Lazard International 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 Lazard International Compounders, you can compare the effects of market volatilities on Jpmorgan Equity and Lazard 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 Equity with a short position of Lazard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Lazard International.
Diversification Opportunities for Jpmorgan Equity and Lazard International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Lazard is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Income and Lazard International Compounde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard International 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 Lazard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard International has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Lazard International go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Lazard International
Assuming the 90 days horizon Jpmorgan Equity Income is expected to generate 0.81 times more return on investment than Lazard International. However, Jpmorgan Equity Income is 1.23 times less risky than Lazard International. It trades about 0.23 of its potential returns per unit of risk. Lazard International Compounders is currently generating about 0.17 per unit of risk. If you would invest 2,384 in Jpmorgan Equity Income on December 2, 2024 and sell it today you would earn a total of 149.00 from holding Jpmorgan Equity Income or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Income vs. Lazard International Compounde
Performance |
| Timeline |
| Jpmorgan Equity Income |
| Lazard International |
Jpmorgan Equity and Lazard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Lazard International
The main advantage of trading using opposite Jpmorgan Equity and Lazard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Lazard 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 Lazard International will offset losses from the drop in Lazard International's long position.| Jpmorgan Equity vs. World Energy Fund | Jpmorgan Equity vs. Clearbridge Energy Mlp | Jpmorgan Equity vs. Gamco Natural Resources | Jpmorgan Equity vs. World Energy Fund |
| Lazard International vs. Jpmorgan Large Cap | Lazard International vs. Calvert Large Cap | Lazard International vs. John Hancock Variable | Lazard International vs. Guidemark Large Cap |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |