Correlation Between Hartford International and Jpmorgan Disciplined

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

By analyzing existing cross correlation between The Hartford International and Jpmorgan Disciplined Equity, you can compare the effects of market volatilities on Hartford International and Jpmorgan Disciplined 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 Hartford International with a short position of Jpmorgan Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford International and Jpmorgan Disciplined.

Diversification Opportunities for Hartford International and Jpmorgan Disciplined

0.12

Correlation Coefficient

Hartford International  Jpmorgan Disciplined

Average diversification

The 3 months correlation between Hartford and Jpmorgan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford International and Jpmorgan Disciplined Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Disciplined and Hartford International 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 The Hartford International are associated (or correlated) with Jpmorgan Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Disciplined has no effect on the direction of Hartford International i.e., Hartford International and Jpmorgan Disciplined go up and down completely randomly.

Pair Corralation between Hartford International and Jpmorgan Disciplined

Assuming the 90 days horizon Hartford International is expected to generate 1.61 times less return on investment than Jpmorgan Disciplined. But when comparing it to its historical volatility, The Hartford International is 1.07 times less risky than Jpmorgan Disciplined. It trades about 0.05 of its potential returns per unit of risk. Jpmorgan Disciplined Equity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,772  in Jpmorgan Disciplined Equity on October 2, 2024 and sell it today you would earn a total of  530.00  from holding Jpmorgan Disciplined Equity or generate 14.05% return on investment over 90 days.

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

The Hartford International  vs.  Jpmorgan Disciplined Equity

Hartford International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Hartford International has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Jpmorgan Disciplined

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Hartford International and Jpmorgan Disciplined

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

The idea behind The Hartford International and Jpmorgan Disciplined Equity 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.