Correlation Between JPMIF Bond and Amundi Label

Can any of the company-specific risk be diversified away by investing in both JPMIF Bond and Amundi Label 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 JPMIF Bond and Amundi Label into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JPMIF Bond Fund and Amundi Label Actions, you can compare the effects of market volatilities on JPMIF Bond and Amundi Label 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 JPMIF Bond with a short position of Amundi Label. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMIF Bond and Amundi Label.

Diversification Opportunities for JPMIF Bond and Amundi Label

-0.28

Correlation Coefficient

JPMIF Bond  Amundi Label

Very good diversification

The 3 months correlation between JPMIF and Amundi is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding JPMIF Bond Fund and Amundi Label Actions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Label Actions and JPMIF Bond 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 JPMIF Bond Fund are associated (or correlated) with Amundi Label. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Label Actions has no effect on the direction of JPMIF Bond i.e., JPMIF Bond and Amundi Label go up and down completely randomly.

Pair Corralation between JPMIF Bond and Amundi Label

Assuming the 90 days trading horizon JPMIF Bond is expected to generate 3.71 times less return on investment than Amundi Label. In addition to that, JPMIF Bond is 1.02 times more volatile than Amundi Label Actions. It trades about 0.1 of its total potential returns per unit of risk. Amundi Label Actions is currently generating about 0.38 per unit of volatility. If you would invest  29,335  in Amundi Label Actions on September 22, 2024 and sell it today you would earn a total of  1,132  from holding Amundi Label Actions or generate 3.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.3%
Values	Daily Returns

JPMIF Bond Fund  vs.  Amundi Label Actions

JPMIF Bond Fund

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMIF Bond Fund are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound technical and fundamental indicators, JPMIF Bond is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Amundi Label Actions

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Label Actions are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Amundi Label is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JPMIF Bond and Amundi Label

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

The idea behind JPMIF Bond Fund and Amundi Label Actions 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.