Correlation Between Jpmorgan International and Mutual Of

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

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

Diversification Opportunities for Jpmorgan International and Mutual Of

-0.52

Correlation Coefficient

Jpmorgan International  Mutual Of

Excellent diversification

The 3 months correlation between Jpmorgan and Mutual is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan International Value and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America and Jpmorgan International 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 International Value are associated (or correlated) with Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Jpmorgan International i.e., Jpmorgan International and Mutual Of go up and down completely randomly.

Pair Corralation between Jpmorgan International and Mutual Of

Assuming the 90 days horizon Jpmorgan International Value is expected to generate 0.83 times more return on investment than Mutual Of. However, Jpmorgan International Value is 1.21 times less risky than Mutual Of. It trades about 0.27 of its potential returns per unit of risk. Mutual Of America is currently generating about -0.1 per unit of risk. If you would invest  1,402  in Jpmorgan International Value on December 30, 2024 and sell it today you would earn a total of  205.00  from holding Jpmorgan International Value or generate 14.62% return on investment over 90 days.

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

Jpmorgan International Value  vs.  Mutual Of America

Jpmorgan International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan International Value are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan International showed solid returns over the last few months and may actually be approaching a breakup point.

Mutual Of America

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mutual Of America has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward-looking signals 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 Jpmorgan International and Mutual Of

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

The idea behind Jpmorgan International Value and Mutual Of America 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.