Correlation Between Jpmorgan E and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Jpmorgan E and Loomis Sayles 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 E and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan E Plus and Loomis Sayles Inflation, you can compare the effects of market volatilities on Jpmorgan E and Loomis Sayles 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 E with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan E and Loomis Sayles.
Diversification Opportunities for Jpmorgan E and Loomis Sayles
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Loomis is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan E Plus and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation and Jpmorgan E 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 E Plus are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Inflation has no effect on the direction of Jpmorgan E i.e., Jpmorgan E and Loomis Sayles go up and down completely randomly.
Pair Corralation between Jpmorgan E and Loomis Sayles
Assuming the 90 days horizon Jpmorgan E Plus is expected to generate 1.25 times more return on investment than Loomis Sayles. However, Jpmorgan E is 1.25 times more volatile than Loomis Sayles Inflation. It trades about 0.16 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about 0.2 per unit of risk. If you would invest 718.00 in Jpmorgan E Plus on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Jpmorgan E Plus or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan E Plus vs. Loomis Sayles Inflation
Performance |
| Timeline |
| Jpmorgan E Plus |
| Loomis Sayles Inflation |
Jpmorgan E and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan E and Loomis Sayles
The main advantage of trading using opposite Jpmorgan E and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan E position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Jpmorgan E vs. Materials Portfolio Fidelity | Jpmorgan E vs. Balanced Fund Investor | Jpmorgan E vs. Falcon Focus Scv | Jpmorgan E vs. Ab Value Fund |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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