Correlation Between Edward Jones and Deutsche Small

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

By analyzing existing cross correlation between Edward Jones Money and Deutsche Small Cap, you can compare the effects of market volatilities on Edward Jones and Deutsche Small 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 Edward Jones with a short position of Deutsche Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edward Jones and Deutsche Small.

Diversification Opportunities for Edward Jones and Deutsche Small

0.0

Correlation Coefficient

Edward Jones  Deutsche Small

Pay attention - limited upside

The 3 months correlation between Edward and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edward Jones Money and Deutsche Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Small Cap and Edward Jones 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 Edward Jones Money are associated (or correlated) with Deutsche Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Small Cap has no effect on the direction of Edward Jones i.e., Edward Jones and Deutsche Small go up and down completely randomly.

Pair Corralation between Edward Jones and Deutsche Small

If you would invest  100.00  in Edward Jones Money on December 3, 2024 and sell it today you would earn a total of  0.00  from holding Edward Jones Money or generate 0.0% return on investment over 90 days.

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

Edward Jones Money  vs.  Deutsche Small Cap

Edward Jones Money

Risk-Adjusted Performance

Very Weak

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

Deutsche Small Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Deutsche Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Edward Jones and Deutsche Small

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

The idea behind Edward Jones Money and Deutsche Small 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.