Correlation Between Van Eck and JPMorgan Fundamental

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

By analyzing existing cross correlation between Van Eck and JPMorgan Fundamental Data, you can compare the effects of market volatilities on Van Eck and JPMorgan Fundamental 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 Van Eck with a short position of JPMorgan Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Eck and JPMorgan Fundamental.

Diversification Opportunities for Van Eck and JPMorgan Fundamental

0.26

Correlation Coefficient

Van Eck  JPMorgan Fundamental

Modest diversification

The 3 months correlation between Van and JPMorgan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Van Eck and JPMorgan Fundamental Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Fundamental Data and Van Eck 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 Van Eck are associated (or correlated) with JPMorgan Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Fundamental Data has no effect on the direction of Van Eck i.e., Van Eck and JPMorgan Fundamental go up and down completely randomly.

Pair Corralation between Van Eck and JPMorgan Fundamental

If you would invest  5,648  in JPMorgan Fundamental Data on October 24, 2024 and sell it today you would earn a total of  106.00  from holding JPMorgan Fundamental Data or generate 1.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.56%
Values	Daily Returns

Van Eck  vs.  JPMorgan Fundamental Data

Van Eck

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Van Eck has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Van Eck is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

JPMorgan Fundamental Data

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Fundamental Data are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, JPMorgan Fundamental is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Van Eck and JPMorgan Fundamental

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

The idea behind Van Eck and JPMorgan Fundamental Data 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.