Correlation Between Intel and JPMIF Bond

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

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

Diversification Opportunities for Intel and JPMIF Bond

-0.02

Correlation Coefficient

Intel  JPMIF Bond

Good diversification

The 3 months correlation between Intel and JPMIF is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Intel and JPMIF Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMIF Bond Fund and Intel 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 Intel are associated (or correlated) with JPMIF Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMIF Bond Fund has no effect on the direction of Intel i.e., Intel and JPMIF Bond go up and down completely randomly.

Pair Corralation between Intel and JPMIF Bond

Assuming the 90 days trading horizon Intel is expected to under-perform the JPMIF Bond. In addition to that, Intel is 9.38 times more volatile than JPMIF Bond Fund. It trades about -0.07 of its total potential returns per unit of risk. JPMIF Bond Fund is currently generating about 0.08 per unit of volatility. If you would invest  21,974  in JPMIF Bond Fund on September 22, 2024 and sell it today you would earn a total of  987.00  from holding JPMIF Bond Fund or generate 4.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.24%
Values	Daily Returns

Intel  vs.  JPMIF Bond Fund

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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.

Pair Trading with Intel and JPMIF Bond

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

The idea behind Intel and JPMIF Bond Fund 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.