Correlation Between Jpmorgan Core and Jpmorgan International

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

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

Diversification Opportunities for Jpmorgan Core and Jpmorgan International

0.91

Correlation Coefficient

Jpmorgan Core  Jpmorgan International

Almost no diversification

The 3 months correlation between Jpmorgan and Jpmorgan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan E Bond and Jpmorgan International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan International and Jpmorgan Core 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 E Bond are associated (or correlated) with Jpmorgan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan International has no effect on the direction of Jpmorgan Core i.e., Jpmorgan Core and Jpmorgan International go up and down completely randomly.

Pair Corralation between Jpmorgan Core and Jpmorgan International

Assuming the 90 days horizon Jpmorgan Core is expected to generate 6.03 times less return on investment than Jpmorgan International. But when comparing it to its historical volatility, Jpmorgan E Bond is 2.91 times less risky than Jpmorgan International. It trades about 0.1 of its potential returns per unit of risk. Jpmorgan International Equity is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,827  in Jpmorgan International Equity on December 28, 2024 and sell it today you would earn a total of  193.00  from holding Jpmorgan International Equity or generate 10.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Jpmorgan E Bond  vs.  Jpmorgan International Equity

Jpmorgan E Bond

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan E Bond are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan International Equity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Jpmorgan Core and Jpmorgan International

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

The idea behind Jpmorgan E Bond and Jpmorgan International Equity 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.