Correlation Between Vy Jpmorgan and New York

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

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

Diversification Opportunities for Vy Jpmorgan and New York

0.54

Correlation Coefficient

Vy Jpmorgan  New York

Very weak diversification

The 3 months correlation between IJPTX and New is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vy Jpmorgan Emerging and New York Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Bond and Vy Jpmorgan 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 Vy Jpmorgan Emerging are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Bond has no effect on the direction of Vy Jpmorgan i.e., Vy Jpmorgan and New York go up and down completely randomly.

Pair Corralation between Vy Jpmorgan and New York

Assuming the 90 days horizon Vy Jpmorgan Emerging is expected to generate 0.8 times more return on investment than New York. However, Vy Jpmorgan Emerging is 1.24 times less risky than New York. It trades about 0.03 of its potential returns per unit of risk. New York Bond is currently generating about -0.13 per unit of risk. If you would invest  1,243  in Vy Jpmorgan Emerging on September 18, 2024 and sell it today you would earn a total of  18.00  from holding Vy Jpmorgan Emerging or generate 1.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Vy Jpmorgan Emerging  vs.  New York Bond

Vy Jpmorgan Emerging

Risk-Adjusted Performance

2 of 100

Weak

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

New York Bond

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Vy Jpmorgan and New York

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

The idea behind Vy Jpmorgan Emerging and New York Bond 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.