Correlation Between Dana Large and Jpmorgan Intrepid

Can any of the company-specific risk be diversified away by investing in both Dana Large and Jpmorgan Intrepid 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 Dana Large and Jpmorgan Intrepid into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dana Large Cap and Jpmorgan Intrepid Value, you can compare the effects of market volatilities on Dana Large and Jpmorgan Intrepid 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 Dana Large with a short position of Jpmorgan Intrepid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Jpmorgan Intrepid.

Diversification Opportunities for Dana Large and Jpmorgan Intrepid

0.65

Correlation Coefficient

Dana Large  Jpmorgan Intrepid

Poor diversification

The 3 months correlation between Dana and Jpmorgan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Jpmorgan Intrepid Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Intrepid Value and Dana Large 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 Dana Large Cap are associated (or correlated) with Jpmorgan Intrepid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Intrepid Value has no effect on the direction of Dana Large i.e., Dana Large and Jpmorgan Intrepid go up and down completely randomly.

Pair Corralation between Dana Large and Jpmorgan Intrepid

Assuming the 90 days horizon Dana Large Cap is expected to under-perform the Jpmorgan Intrepid. In addition to that, Dana Large is 2.38 times more volatile than Jpmorgan Intrepid Value. It trades about -0.11 of its total potential returns per unit of risk. Jpmorgan Intrepid Value is currently generating about -0.15 per unit of volatility. If you would invest  3,253  in Jpmorgan Intrepid Value on October 15, 2024 and sell it today you would lose (317.00) from holding Jpmorgan Intrepid Value or give up 9.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Dana Large Cap  vs.  Jpmorgan Intrepid Value

Dana Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dana Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Jpmorgan Intrepid Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jpmorgan Intrepid Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Dana Large and Jpmorgan Intrepid

The main advantage of trading using opposite Dana Large and Jpmorgan Intrepid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Jpmorgan Intrepid 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 Intrepid will offset losses from the drop in Jpmorgan Intrepid's long position.

The idea behind Dana Large Cap and Jpmorgan Intrepid Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.