Correlation Between Jpmorgan Mid and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Mid and Franklin Growth 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 Mid and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Mid Cap and Franklin Growth Opportunities, you can compare the effects of market volatilities on Jpmorgan Mid and Franklin Growth 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 Mid with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Mid and Franklin Growth.
Diversification Opportunities for Jpmorgan Mid and Franklin Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jpmorgan and Franklin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Mid Cap and Franklin Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth Oppo and Jpmorgan Mid 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 Mid Cap are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth Oppo has no effect on the direction of Jpmorgan Mid i.e., Jpmorgan Mid and Franklin Growth go up and down completely randomly.
Pair Corralation between Jpmorgan Mid and Franklin Growth
Assuming the 90 days horizon Jpmorgan Mid is expected to generate 1.18 times less return on investment than Franklin Growth. But when comparing it to its historical volatility, Jpmorgan Mid Cap is 1.08 times less risky than Franklin Growth. It trades about 0.09 of its potential returns per unit of risk. Franklin Growth Opportunities is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,114 in Franklin Growth Opportunities on August 29, 2024 and sell it today you would earn a total of 1,237 from holding Franklin Growth Opportunities or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Mid Cap vs. Franklin Growth Opportunities
Performance |
| Timeline |
| Jpmorgan Mid Cap |
| Franklin Growth Oppo |
Jpmorgan Mid and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Mid and Franklin Growth
The main advantage of trading using opposite Jpmorgan Mid and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Mid position performs unexpectedly, Franklin Growth 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 Franklin Growth will offset losses from the drop in Franklin Growth's long position.| Jpmorgan Mid vs. California Bond Fund | Jpmorgan Mid vs. Sterling Capital Short | Jpmorgan Mid vs. Transamerica Funds | Jpmorgan Mid vs. Artisan High Income |
| Franklin Growth vs. Abr 7525 Volatility | Franklin Growth vs. Scharf Global Opportunity | Franklin Growth vs. Arrow Managed Futures | Franklin Growth vs. Aam Select Income |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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