Correlation Between Siit Dynamic and Jpmorgan

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

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

Diversification Opportunities for Siit Dynamic and Jpmorgan

0.87

Correlation Coefficient

Siit Dynamic  Jpmorgan

Very poor diversification

The 3 months correlation between Siit and Jpmorgan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Siit Dynamic Asset and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity and Siit Dynamic 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 Siit Dynamic Asset are associated (or correlated) with Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Equity has no effect on the direction of Siit Dynamic i.e., Siit Dynamic and Jpmorgan go up and down completely randomly.

Pair Corralation between Siit Dynamic and Jpmorgan

Assuming the 90 days horizon Siit Dynamic Asset is expected to generate 0.87 times more return on investment than Jpmorgan. However, Siit Dynamic Asset is 1.15 times less risky than Jpmorgan. It trades about 0.11 of its potential returns per unit of risk. Jpmorgan Equity Fund is currently generating about 0.07 per unit of risk. If you would invest  1,856  in Siit Dynamic Asset on October 27, 2024 and sell it today you would earn a total of  33.00  from holding Siit Dynamic Asset or generate 1.78% return on investment over 90 days.

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

Siit Dynamic Asset  vs.  Jpmorgan Equity Fund

Siit Dynamic Asset

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siit Dynamic Asset has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Jpmorgan Equity

Risk-Adjusted Performance

0 of 100

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 technical and fundamental indicators, Jpmorgan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Siit Dynamic and Jpmorgan

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

The idea behind Siit Dynamic Asset and Jpmorgan Equity Fund 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.