Correlation Between Aig Government and Jpmorgan Investor
Can any of the company-specific risk be diversified away by investing in both Aig Government and Jpmorgan Investor 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 Aig Government and Jpmorgan Investor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Jpmorgan Investor Balanced, you can compare the effects of market volatilities on Aig Government and Jpmorgan Investor 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 Aig Government with a short position of Jpmorgan Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Jpmorgan Investor.
Diversification Opportunities for Aig Government and Jpmorgan Investor
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and Jpmorgan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Jpmorgan Investor Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Investor and Aig Government 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 Aig Government Money are associated (or correlated) with Jpmorgan Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Investor has no effect on the direction of Aig Government i.e., Aig Government and Jpmorgan Investor go up and down completely randomly.
Pair Corralation between Aig Government and Jpmorgan Investor
Assuming the 90 days horizon Aig Government is expected to generate 32.29 times less return on investment than Jpmorgan Investor. But when comparing it to its historical volatility, Aig Government Money is 1.86 times less risky than Jpmorgan Investor. It trades about 0.01 of its potential returns per unit of risk. Jpmorgan Investor Balanced is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,585 in Jpmorgan Investor Balanced on September 3, 2024 and sell it today you would earn a total of 56.00 from holding Jpmorgan Investor Balanced or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Jpmorgan Investor Balanced
Performance |
| Timeline |
| Aig Government Money |
| Jpmorgan Investor |
Aig Government and Jpmorgan Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Jpmorgan Investor
The main advantage of trading using opposite Aig Government and Jpmorgan Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Jpmorgan Investor 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 Jpmorgan Investor will offset losses from the drop in Jpmorgan Investor's long position.| Aig Government vs. Vanguard Massachusetts Tax Exempt | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Mfs Massachusetts Municipal |
| Jpmorgan Investor vs. Rbb Fund | Jpmorgan Investor vs. Semiconductor Ultrasector Profund | Jpmorgan Investor vs. Qs Global Equity | Jpmorgan Investor vs. Federated Mdt Large |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |