Correlation Between Jpmorgan Trust and Voya Large

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

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

Diversification Opportunities for Jpmorgan Trust and Voya Large

0.0

Correlation Coefficient

Jpmorgan Trust  Voya Large

Pay attention - limited upside

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

Pair Corralation between Jpmorgan Trust and Voya Large

If you would invest  100.00  in Jpmorgan Trust I on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Jpmorgan Trust I or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Jpmorgan Trust I  vs.  Voya Large Cap

Jpmorgan Trust I

Risk-Adjusted Performance

0 of 100

Very Weak

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

Voya Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

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

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

The idea behind Jpmorgan Trust I and Voya 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.