Correlation Between Jpmorgan Disciplined and Hartford International

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

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

Diversification Opportunities for Jpmorgan Disciplined and Hartford International

-0.11

Correlation Coefficient

Jpmorgan Disciplined  Hartford International

Good diversification

The 3 months correlation between Jpmorgan and Hartford is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Disciplined Equity and The Hartford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford International and Jpmorgan Disciplined 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 Jpmorgan Disciplined Equity are associated (or correlated) with Hartford International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford International has no effect on the direction of Jpmorgan Disciplined i.e., Jpmorgan Disciplined and Hartford International go up and down completely randomly.

Pair Corralation between Jpmorgan Disciplined and Hartford International

Assuming the 90 days horizon Jpmorgan Disciplined Equity is expected to under-perform the Hartford International. In addition to that, Jpmorgan Disciplined is 1.58 times more volatile than The Hartford International. It trades about -0.07 of its total potential returns per unit of risk. The Hartford International is currently generating about -0.08 per unit of volatility. If you would invest  1,970  in The Hartford International on September 23, 2024 and sell it today you would lose (48.00) from holding The Hartford International or give up 2.44% of portfolio value over 90 days.

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

Jpmorgan Disciplined Equity  vs.  The Hartford International

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.

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 fairly strong basic indicators, Hartford International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jpmorgan Disciplined and Hartford International

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

The idea behind Jpmorgan Disciplined Equity and The Hartford International 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.