Correlation Between Jpmorgan Strategic and Mh Elite

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

By analyzing existing cross correlation between Jpmorgan Strategic Income and Mh Elite Small, you can compare the effects of market volatilities on Jpmorgan Strategic and Mh Elite 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 Strategic with a short position of Mh Elite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Strategic and Mh Elite.

Diversification Opportunities for Jpmorgan Strategic and Mh Elite

-0.27

Correlation Coefficient

Jpmorgan Strategic  Mh Elite

Very good diversification

The 3 months correlation between Jpmorgan and MHELX is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Strategic Income and Mh Elite Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mh Elite Small and Jpmorgan Strategic 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 Strategic Income are associated (or correlated) with Mh Elite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mh Elite Small has no effect on the direction of Jpmorgan Strategic i.e., Jpmorgan Strategic and Mh Elite go up and down completely randomly.

Pair Corralation between Jpmorgan Strategic and Mh Elite

Assuming the 90 days horizon Jpmorgan Strategic Income is expected to generate 0.05 times more return on investment than Mh Elite. However, Jpmorgan Strategic Income is 21.32 times less risky than Mh Elite. It trades about 0.31 of its potential returns per unit of risk. Mh Elite Small is currently generating about -0.19 per unit of risk. If you would invest  1,135  in Jpmorgan Strategic Income on December 21, 2024 and sell it today you would earn a total of  11.00  from holding Jpmorgan Strategic Income or generate 0.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	74.58%
Values	Daily Returns

Jpmorgan Strategic Income  vs.  Mh Elite Small

Jpmorgan Strategic Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Strategic Income are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mh Elite Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mh Elite Small 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 essential 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 Jpmorgan Strategic and Mh Elite

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

The idea behind Jpmorgan Strategic Income and Mh Elite Small 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.