Correlation Between Nuveen Real and Jpmorgan Intrepid

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

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

Diversification Opportunities for Nuveen Real and Jpmorgan Intrepid

-0.1

Correlation Coefficient

Nuveen Real  Jpmorgan Intrepid

Good diversification

The 3 months correlation between Nuveen and Jpmorgan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Real Estate 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 Nuveen Real 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 Nuveen Real Estate 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 Nuveen Real i.e., Nuveen Real and Jpmorgan Intrepid go up and down completely randomly.

Pair Corralation between Nuveen Real and Jpmorgan Intrepid

Assuming the 90 days horizon Nuveen Real is expected to generate 5.35 times less return on investment than Jpmorgan Intrepid. In addition to that, Nuveen Real is 1.29 times more volatile than Jpmorgan Intrepid Value. It trades about 0.03 of its total potential returns per unit of risk. Jpmorgan Intrepid Value is currently generating about 0.18 per unit of volatility. If you would invest  3,177  in Jpmorgan Intrepid Value on September 5, 2024 and sell it today you would earn a total of  237.00  from holding Jpmorgan Intrepid Value or generate 7.46% return on investment over 90 days.

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

Nuveen Real Estate  vs.  Jpmorgan Intrepid Value

Nuveen Real Estate

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Real Estate are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nuveen Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Intrepid Value

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Intrepid Value are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan Intrepid may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nuveen Real and Jpmorgan Intrepid

The main advantage of trading using opposite Nuveen Real and Jpmorgan Intrepid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Real 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 Nuveen Real Estate 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.