Correlation Between Intermediate Term and Jpmorgan Short-intermedia

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

By analyzing existing cross correlation between Intermediate Term Tax Free Bond and Jpmorgan Short Intermediate Municipal, you can compare the effects of market volatilities on Intermediate Term and Jpmorgan Short-intermedia 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 Intermediate Term with a short position of Jpmorgan Short-intermedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Term and Jpmorgan Short-intermedia.

Diversification Opportunities for Intermediate Term and Jpmorgan Short-intermedia

0.0

Correlation Coefficient

Intermediate Term  Jpmorgan Short-intermedia

Pay attention - limited upside

The 3 months correlation between Intermediate and Jpmorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Term Tax Free Bon and Jpmorgan Short Intermediate Mu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Short-intermedia and Intermediate Term 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 Intermediate Term Tax Free Bond are associated (or correlated) with Jpmorgan Short-intermedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Short-intermedia has no effect on the direction of Intermediate Term i.e., Intermediate Term and Jpmorgan Short-intermedia go up and down completely randomly.

Pair Corralation between Intermediate Term and Jpmorgan Short-intermedia

If you would invest (100.00) in Jpmorgan Short Intermediate Municipal on October 5, 2024 and sell it today you would earn a total of  100.00  from holding Jpmorgan Short Intermediate Municipal or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Intermediate Term Tax Free Bon  vs.  Jpmorgan Short Intermediate Mu

Intermediate Term Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intermediate Term Tax Free Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Intermediate Term is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Short-intermedia

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Intermediate Term and Jpmorgan Short-intermedia

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

The idea behind Intermediate Term Tax Free Bond and Jpmorgan Short Intermediate Municipal 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.