Correlation Between Jpmorgan Growth and Knife River
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Growth and Knife River 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 Growth and Knife River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Growth Advantage and Knife River, you can compare the effects of market volatilities on Jpmorgan Growth and Knife River 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 Growth with a short position of Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Growth and Knife River.
Diversification Opportunities for Jpmorgan Growth and Knife River
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jpmorgan and Knife is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Growth Advantage and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River and Jpmorgan Growth 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 Growth Advantage are associated (or correlated) with Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Jpmorgan Growth i.e., Jpmorgan Growth and Knife River go up and down completely randomly.
Pair Corralation between Jpmorgan Growth and Knife River
Assuming the 90 days horizon Jpmorgan Growth Advantage is expected to generate 0.51 times more return on investment than Knife River. However, Jpmorgan Growth Advantage is 1.98 times less risky than Knife River. It trades about 0.09 of its potential returns per unit of risk. Knife River is currently generating about 0.01 per unit of risk. If you would invest 3,913 in Jpmorgan Growth Advantage on October 25, 2024 and sell it today you would earn a total of 78.00 from holding Jpmorgan Growth Advantage or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Growth Advantage vs. Knife River
Performance |
| Timeline |
| Jpmorgan Growth Advantage |
| Knife River |
Jpmorgan Growth and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Growth and Knife River
The main advantage of trading using opposite Jpmorgan Growth and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Growth position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.| Jpmorgan Growth vs. Jpmorgan Value Advantage | Jpmorgan Growth vs. Jpmorgan Equity Income | Jpmorgan Growth vs. Barloworld Ltd ADR | Jpmorgan Growth vs. Morningstar Unconstrained Allocation |
| Knife River vs. Hooker Furniture | Knife River vs. Norfolk Southern | Knife River vs. Coty Inc | Knife River vs. Academy Sports Outdoors |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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