Correlation Between PMGR Securities and JPM Global

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

By analyzing existing cross correlation between PMGR Securities 2025 and JPM Global Equity, you can compare the effects of market volatilities on PMGR Securities and JPM Global 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 PMGR Securities with a short position of JPM Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMGR Securities and JPM Global.

Diversification Opportunities for PMGR Securities and JPM Global

-0.22

Correlation Coefficient

PMGR Securities  JPM Global

Very good diversification

The 3 months correlation between PMGR and JPM is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PMGR Securities 2025 and JPM Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM Global Equity and PMGR Securities 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 PMGR Securities 2025 are associated (or correlated) with JPM Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM Global Equity has no effect on the direction of PMGR Securities i.e., PMGR Securities and JPM Global go up and down completely randomly.

Pair Corralation between PMGR Securities and JPM Global

Assuming the 90 days trading horizon PMGR Securities 2025 is expected to generate 0.12 times more return on investment than JPM Global. However, PMGR Securities 2025 is 8.27 times less risky than JPM Global. It trades about 0.23 of its potential returns per unit of risk. JPM Global Equity is currently generating about -0.01 per unit of risk. If you would invest  11,800  in PMGR Securities 2025 on December 25, 2024 and sell it today you would earn a total of  150.00  from holding PMGR Securities 2025 or generate 1.27% return on investment over 90 days.

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

PMGR Securities 2025  vs.  JPM Global Equity

PMGR Securities 2025

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in PMGR Securities 2025 are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively stable basic indicators, PMGR Securities is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

JPM Global Equity

Risk-Adjusted Performance

Very Weak

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

Pair Trading with PMGR Securities and JPM Global

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

The idea behind PMGR Securities 2025 and JPM Global 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.