Correlation Between Highland Long/short and Jpmorgan Short
Can any of the company-specific risk be diversified away by investing in both Highland Long/short and Jpmorgan Short 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 Highland Long/short and Jpmorgan Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highland Longshort Healthcare and Jpmorgan Short Duration, you can compare the effects of market volatilities on Highland Long/short and Jpmorgan Short 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 Highland Long/short with a short position of Jpmorgan Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Long/short and Jpmorgan Short.
Diversification Opportunities for Highland Long/short and Jpmorgan Short
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Highland and Jpmorgan is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare and Jpmorgan Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Short Duration and Highland Long/short 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 Highland Longshort Healthcare are associated (or correlated) with Jpmorgan Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Short Duration has no effect on the direction of Highland Long/short i.e., Highland Long/short and Jpmorgan Short go up and down completely randomly.
Pair Corralation between Highland Long/short and Jpmorgan Short
Assuming the 90 days horizon Highland Longshort Healthcare is expected to under-perform the Jpmorgan Short. In addition to that, Highland Long/short is 1.55 times more volatile than Jpmorgan Short Duration. It trades about -0.07 of its total potential returns per unit of risk. Jpmorgan Short Duration is currently generating about 0.22 per unit of volatility. If you would invest 921.00 in Jpmorgan Short Duration on December 5, 2024 and sell it today you would earn a total of 15.00 from holding Jpmorgan Short Duration or generate 1.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Highland Longshort Healthcare vs. Jpmorgan Short Duration
Performance |
Timeline |
Highland Long/short |
Jpmorgan Short Duration |
Highland Long/short and Jpmorgan Short Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Highland Long/short and Jpmorgan Short
The main advantage of trading using opposite Highland Long/short and Jpmorgan Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Long/short position performs unexpectedly, Jpmorgan Short 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 Short will offset losses from the drop in Jpmorgan Short's long position.Highland Long/short vs. Victory Incore Fund | Highland Long/short vs. Alternative Asset Allocation | Highland Long/short vs. Tfa Alphagen Growth | Highland Long/short vs. Ft 7934 Corporate |
Jpmorgan Short vs. Fxybjx | Jpmorgan Short vs. Fznopx | Jpmorgan Short vs. Fzdaqx | Jpmorgan Short vs. Fwnhtx |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |