Correlation Between Jpmorgan Mid and Thornburg International
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Mid and Thornburg International 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 Thornburg International 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 Thornburg International Value, you can compare the effects of market volatilities on Jpmorgan Mid and Thornburg International 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 Thornburg International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Mid and Thornburg International.
Diversification Opportunities for Jpmorgan Mid and Thornburg International
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Thornburg is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Mid Cap and Thornburg International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International 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 Thornburg International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg International has no effect on the direction of Jpmorgan Mid i.e., Jpmorgan Mid and Thornburg International go up and down completely randomly.
Pair Corralation between Jpmorgan Mid and Thornburg International
Assuming the 90 days horizon Jpmorgan Mid Cap is expected to generate 1.07 times more return on investment than Thornburg International. However, Jpmorgan Mid is 1.07 times more volatile than Thornburg International Value. It trades about 0.06 of its potential returns per unit of risk. Thornburg International Value is currently generating about 0.06 per unit of risk. If you would invest 5,862 in Jpmorgan Mid Cap on November 3, 2024 and sell it today you would earn a total of 760.00 from holding Jpmorgan Mid Cap or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Mid Cap vs. Thornburg International Value
Performance |
| Timeline |
| Jpmorgan Mid Cap |
| Thornburg International |
Jpmorgan Mid and Thornburg International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Mid and Thornburg International
The main advantage of trading using opposite Jpmorgan Mid and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Mid position performs unexpectedly, Thornburg International 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 Thornburg International will offset losses from the drop in Thornburg International's long position.| Jpmorgan Mid vs. Jpmorgan International Value | Jpmorgan Mid vs. Jpmorgan Equity Fund | Jpmorgan Mid vs. Jpmorgan High Yield | Jpmorgan Mid vs. Jpmorgan Small Cap |
| Thornburg International vs. Jpmorgan Mid Cap | Thornburg International vs. Jpmorgan International Value | Thornburg International vs. Jpmorgan Equity Fund | Thornburg International vs. Jpmorgan High Yield |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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