Correlation Between Ftfa-franklin Templeton and Jpmorgan Preferred
Can any of the company-specific risk be diversified away by investing in both Ftfa-franklin Templeton and Jpmorgan Preferred 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 Ftfa-franklin Templeton and Jpmorgan Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Jpmorgan Preferred And, you can compare the effects of market volatilities on Ftfa-franklin Templeton and Jpmorgan Preferred 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 Ftfa-franklin Templeton with a short position of Jpmorgan Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa-franklin Templeton and Jpmorgan Preferred.
Diversification Opportunities for Ftfa-franklin Templeton and Jpmorgan Preferred
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ftfa-franklin and Jpmorgan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Jpmorgan Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Preferred And and Ftfa-franklin Templeton 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Jpmorgan Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Preferred And has no effect on the direction of Ftfa-franklin Templeton i.e., Ftfa-franklin Templeton and Jpmorgan Preferred go up and down completely randomly.
Pair Corralation between Ftfa-franklin Templeton and Jpmorgan Preferred
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to under-perform the Jpmorgan Preferred. In addition to that, Ftfa-franklin Templeton is 4.93 times more volatile than Jpmorgan Preferred And. It trades about -0.1 of its total potential returns per unit of risk. Jpmorgan Preferred And is currently generating about 0.4 per unit of volatility. If you would invest 960.00 in Jpmorgan Preferred And on December 4, 2024 and sell it today you would earn a total of 10.00 from holding Jpmorgan Preferred And or generate 1.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Jpmorgan Preferred And
Performance |
Timeline |
Ftfa Franklin Templeton |
Jpmorgan Preferred And |
Ftfa-franklin Templeton and Jpmorgan Preferred Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ftfa-franklin Templeton and Jpmorgan Preferred
The main advantage of trading using opposite Ftfa-franklin Templeton and Jpmorgan Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa-franklin Templeton position performs unexpectedly, Jpmorgan Preferred 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 Preferred will offset losses from the drop in Jpmorgan Preferred's long position.Ftfa-franklin Templeton vs. Mirova Global Green | Ftfa-franklin Templeton vs. Legg Mason Bw | Ftfa-franklin Templeton vs. Aqr Global Macro | Ftfa-franklin Templeton vs. Nuveen Global Real |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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