Correlation Between Fidelity New and Jpmorgan Trust

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

By analyzing existing cross correlation between Fidelity New Markets and Jpmorgan Trust Ii, you can compare the effects of market volatilities on Fidelity New and Jpmorgan Trust 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 Fidelity New with a short position of Jpmorgan Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity New and Jpmorgan Trust.

Diversification Opportunities for Fidelity New and Jpmorgan Trust

0.0

Correlation Coefficient

Fidelity New  Jpmorgan Trust

Pay attention - limited upside

The 3 months correlation between Fidelity and Jpmorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity New Markets and Jpmorgan Trust Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Trust Ii and Fidelity New 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 Fidelity New Markets are associated (or correlated) with Jpmorgan Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Trust Ii has no effect on the direction of Fidelity New i.e., Fidelity New and Jpmorgan Trust go up and down completely randomly.

Pair Corralation between Fidelity New and Jpmorgan Trust

If you would invest  1,252  in Fidelity New Markets on December 22, 2024 and sell it today you would earn a total of  43.00  from holding Fidelity New Markets or generate 3.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fidelity New Markets  vs.  Jpmorgan Trust Ii

Fidelity New Markets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity New Markets are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Fidelity New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Trust Ii

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Fidelity New and Jpmorgan Trust

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

The idea behind Fidelity New Markets and Jpmorgan Trust Ii 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.