Correlation Between Jp Morgan and Voya Multi

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

By analyzing existing cross correlation between Jp Morgan Smartretirement and Voya Multi Manager International, you can compare the effects of market volatilities on Jp Morgan and Voya Multi 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 Jp Morgan with a short position of Voya Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jp Morgan and Voya Multi.

Diversification Opportunities for Jp Morgan and Voya Multi

-0.1

Correlation Coefficient

Jp Morgan  Voya Multi

Good diversification

The 3 months correlation between JTSQX and Voya is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jp Morgan Smartretirement and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager and Jp Morgan 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 Jp Morgan Smartretirement are associated (or correlated) with Voya Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Jp Morgan i.e., Jp Morgan and Voya Multi go up and down completely randomly.

Pair Corralation between Jp Morgan and Voya Multi

Assuming the 90 days horizon Jp Morgan Smartretirement is expected to generate 0.79 times more return on investment than Voya Multi. However, Jp Morgan Smartretirement is 1.27 times less risky than Voya Multi. It trades about 0.14 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about -0.03 per unit of risk. If you would invest  2,286  in Jp Morgan Smartretirement on September 12, 2024 and sell it today you would earn a total of  118.00  from holding Jp Morgan Smartretirement or generate 5.16% return on investment over 90 days.

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

Jp Morgan Smartretirement  vs.  Voya Multi Manager Internation

Jp Morgan Smartretirement

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jp Morgan Smartretirement are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jp Morgan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Multi Manager

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jp Morgan and Voya Multi

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

The idea behind Jp Morgan Smartretirement and Voya Multi Manager International 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.