Correlation Between Ftfa-franklin Templeton and Jpmorgan Intrepid

Can any of the company-specific risk be diversified away by investing in both Ftfa-franklin Templeton 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 Ftfa-franklin Templeton and Jpmorgan Intrepid 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 Intrepid Mid, you can compare the effects of market volatilities on Ftfa-franklin Templeton 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 Ftfa-franklin Templeton with a short position of Jpmorgan Intrepid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa-franklin Templeton and Jpmorgan Intrepid.

Diversification Opportunities for Ftfa-franklin Templeton and Jpmorgan Intrepid

0.8

Correlation Coefficient

Ftfa-franklin Templeton  Jpmorgan Intrepid

Very poor diversification

The 3 months correlation between Ftfa-franklin and Jpmorgan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Jpmorgan Intrepid Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Intrepid Mid 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 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 Mid has no effect on the direction of Ftfa-franklin Templeton i.e., Ftfa-franklin Templeton and Jpmorgan Intrepid go up and down completely randomly.

Pair Corralation between Ftfa-franklin Templeton and Jpmorgan Intrepid

Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 0.8 times more return on investment than Jpmorgan Intrepid. However, Ftfa Franklin Templeton Growth is 1.25 times less risky than Jpmorgan Intrepid. It trades about 0.0 of its potential returns per unit of risk. Jpmorgan Intrepid Mid is currently generating about -0.07 per unit of risk. If you would invest  2,051  in Ftfa Franklin Templeton Growth on December 20, 2024 and sell it today you would lose (7.00) from holding Ftfa Franklin Templeton Growth or give up 0.34% of portfolio value over 90 days.

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

Ftfa Franklin Templeton Growth  vs.  Jpmorgan Intrepid Mid

Ftfa Franklin Templeton

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ftfa Franklin Templeton Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ftfa-franklin Templeton is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Intrepid Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jpmorgan Intrepid Mid has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jpmorgan Intrepid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ftfa-franklin Templeton and Jpmorgan Intrepid

The main advantage of trading using opposite Ftfa-franklin Templeton and Jpmorgan Intrepid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa-franklin Templeton 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 Ftfa Franklin Templeton Growth and Jpmorgan Intrepid Mid 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.