Correlation Between Jpmorgan Hedged and Vest Us

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

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

Diversification Opportunities for Jpmorgan Hedged and Vest Us

0.26

Correlation Coefficient

Jpmorgan Hedged  Vest Us

Modest diversification

The 3 months correlation between Jpmorgan and Vest is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Hedged Equity and Vest Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vest Large Cap and Jpmorgan Hedged 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 Hedged Equity are associated (or correlated) with Vest Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vest Large Cap has no effect on the direction of Jpmorgan Hedged i.e., Jpmorgan Hedged and Vest Us go up and down completely randomly.

Pair Corralation between Jpmorgan Hedged and Vest Us

Assuming the 90 days horizon Jpmorgan Hedged Equity is expected to under-perform the Vest Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Hedged Equity is 2.62 times less risky than Vest Us. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Vest Large Cap is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  802.00  in Vest Large Cap on December 21, 2024 and sell it today you would lose (17.00) from holding Vest Large Cap or give up 2.12% of portfolio value over 90 days.

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

Jpmorgan Hedged Equity  vs.  Vest Large Cap

Jpmorgan Hedged Equity

Risk-Adjusted Performance

Very Weak

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

Vest Large Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vest Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Vest Us 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 Hedged and Vest Us

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

The idea behind Jpmorgan Hedged Equity and Vest Large Cap 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.

Check out your portfolio center.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.