Correlation Between Jpmorgan Intrepid and Firsthand Technology

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

By analyzing existing cross correlation between Jpmorgan Intrepid Value and Firsthand Technology Opportunities, you can compare the effects of market volatilities on Jpmorgan Intrepid and Firsthand Technology 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 Intrepid with a short position of Firsthand Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Intrepid and Firsthand Technology.

Diversification Opportunities for Jpmorgan Intrepid and Firsthand Technology

0.07

Correlation Coefficient

Jpmorgan Intrepid  Firsthand Technology

Significant diversification

The 3 months correlation between Jpmorgan and Firsthand is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Intrepid Value and Firsthand Technology Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firsthand Technology and Jpmorgan Intrepid 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 Intrepid Value are associated (or correlated) with Firsthand Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firsthand Technology has no effect on the direction of Jpmorgan Intrepid i.e., Jpmorgan Intrepid and Firsthand Technology go up and down completely randomly.

Pair Corralation between Jpmorgan Intrepid and Firsthand Technology

Assuming the 90 days horizon Jpmorgan Intrepid Value is expected to generate 0.44 times more return on investment than Firsthand Technology. However, Jpmorgan Intrepid Value is 2.26 times less risky than Firsthand Technology. It trades about 0.03 of its potential returns per unit of risk. Firsthand Technology Opportunities is currently generating about -0.02 per unit of risk. If you would invest  2,691  in Jpmorgan Intrepid Value on September 26, 2024 and sell it today you would earn a total of  306.00  from holding Jpmorgan Intrepid Value or generate 11.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

Jpmorgan Intrepid Value  vs.  Firsthand Technology Opportuni

Jpmorgan Intrepid Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jpmorgan Intrepid Value 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.

Firsthand Technology

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Firsthand Technology Opportunities are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Firsthand Technology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jpmorgan Intrepid and Firsthand Technology

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

The idea behind Jpmorgan Intrepid Value and Firsthand Technology Opportunities 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 CEOs Directory module to screen CEOs from public companies around the world.