Correlation Between Jpmorgan Equity and Pgim Jennison

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

By analyzing existing cross correlation between Jpmorgan Equity Fund and Pgim Jennison Technology, you can compare the effects of market volatilities on Jpmorgan Equity and Pgim Jennison 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 Equity with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Pgim Jennison.

Diversification Opportunities for Jpmorgan Equity and Pgim Jennison

0.0

Correlation Coefficient

Jpmorgan Equity  Pgim Jennison

Pay attention - limited upside

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

Pair Corralation between Jpmorgan Equity and Pgim Jennison

If you would invest (100.00) in Jpmorgan Equity Fund on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Jpmorgan Equity Fund or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jpmorgan Equity Fund  vs.  Pgim Jennison Technology

Jpmorgan Equity

Risk-Adjusted Performance

Very Weak

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

Pgim Jennison Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pgim Jennison Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators 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 Equity and Pgim Jennison

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

The idea behind Jpmorgan Equity Fund and Pgim Jennison Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.