Correlation Between Smallcap Growth and Jpmorgan International
Can any of the company-specific risk be diversified away by investing in both Smallcap Growth 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 Smallcap Growth and Jpmorgan International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smallcap Growth Fund and Jpmorgan International Value, you can compare the effects of market volatilities on Smallcap Growth 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 Smallcap Growth with a short position of Jpmorgan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smallcap Growth and Jpmorgan International.
Diversification Opportunities for Smallcap Growth and Jpmorgan International
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smallcap and Jpmorgan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Growth Fund and Jpmorgan International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan International and Smallcap Growth 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 Smallcap Growth Fund 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 Smallcap Growth i.e., Smallcap Growth and Jpmorgan International go up and down completely randomly.
Pair Corralation between Smallcap Growth and Jpmorgan International
Assuming the 90 days horizon Smallcap Growth Fund is expected to under-perform the Jpmorgan International. In addition to that, Smallcap Growth is 1.68 times more volatile than Jpmorgan International Value. It trades about -0.12 of its total potential returns per unit of risk. Jpmorgan International Value is currently generating about 0.27 per unit of volatility. If you would invest 1,402 in Jpmorgan International Value on December 30, 2024 and sell it today you would earn a total of 205.00 from holding Jpmorgan International Value or generate 14.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Smallcap Growth Fund vs. Jpmorgan International Value
Performance |
Timeline |
Smallcap Growth |
Jpmorgan International |
Smallcap Growth and Jpmorgan International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Smallcap Growth and Jpmorgan International
The main advantage of trading using opposite Smallcap Growth and Jpmorgan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smallcap Growth 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.Smallcap Growth vs. Transamerica Financial Life | Smallcap Growth vs. Ultrashort Small Cap Profund | Smallcap Growth vs. Fidelity Small Cap | Smallcap Growth vs. Applied Finance Explorer |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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