Correlation Between Gold and Jpmorgan Trust
Can any of the company-specific risk be diversified away by investing in both Gold and Jpmorgan Trust 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 Gold and Jpmorgan Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold And Precious and Jpmorgan Trust I, you can compare the effects of market volatilities on Gold and Jpmorgan Trust 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 Gold with a short position of Jpmorgan Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold and Jpmorgan Trust.
Diversification Opportunities for Gold and Jpmorgan Trust
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gold and Jpmorgan is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gold And Precious and Jpmorgan Trust I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Trust I and Gold 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 Gold And Precious are associated (or correlated) with Jpmorgan Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Trust I has no effect on the direction of Gold i.e., Gold and Jpmorgan Trust go up and down completely randomly.
Pair Corralation between Gold and Jpmorgan Trust
Assuming the 90 days horizon Gold is expected to generate 417.53 times less return on investment than Jpmorgan Trust. But when comparing it to its historical volatility, Gold And Precious is 58.75 times less risky than Jpmorgan Trust. It trades about 0.04 of its potential returns per unit of risk. Jpmorgan Trust I is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Jpmorgan Trust I on September 14, 2024 and sell it today you would earn a total of 270.00 from holding Jpmorgan Trust I or generate 270.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.28% |
| Values | Daily Returns |
Gold And Precious vs. Jpmorgan Trust I
Performance |
| Timeline |
| Gold And Precious |
| Jpmorgan Trust I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gold and Jpmorgan Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold and Jpmorgan Trust
The main advantage of trading using opposite Gold and Jpmorgan Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold position performs unexpectedly, Jpmorgan Trust 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 Trust will offset losses from the drop in Jpmorgan Trust's long position.| Gold vs. World Precious Minerals | Gold vs. Near Term Tax Free | Gold vs. Us Global Investors | Gold vs. Global Resources Fund |
| Jpmorgan Trust vs. Gold And Precious | Jpmorgan Trust vs. Invesco Gold Special | Jpmorgan Trust vs. Europac Gold Fund | Jpmorgan Trust vs. International Investors Gold |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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