Correlation Between Jpmorgan Global and Fmi Global

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

By analyzing existing cross correlation between Jpmorgan Global Bond and Fmi Global Institutional, you can compare the effects of market volatilities on Jpmorgan Global and Fmi 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 Jpmorgan Global with a short position of Fmi Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Global and Fmi Global.

Diversification Opportunities for Jpmorgan Global and Fmi Global

0.79

Correlation Coefficient

Jpmorgan Global  Fmi Global

Poor diversification

The 3 months correlation between Jpmorgan and Fmi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Global Bond and Fmi Global Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fmi Global Institutional and Jpmorgan Global 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 Jpmorgan Global Bond are associated (or correlated) with Fmi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fmi Global Institutional has no effect on the direction of Jpmorgan Global i.e., Jpmorgan Global and Fmi Global go up and down completely randomly.

Pair Corralation between Jpmorgan Global and Fmi Global

Assuming the 90 days horizon Jpmorgan Global Bond is expected to generate 0.25 times more return on investment than Fmi Global. However, Jpmorgan Global Bond is 4.06 times less risky than Fmi Global. It trades about 0.22 of its potential returns per unit of risk. Fmi Global Institutional is currently generating about 0.05 per unit of risk. If you would invest  959.00  in Jpmorgan Global Bond on May 4, 2025 and sell it today you would earn a total of  24.00  from holding Jpmorgan Global Bond or generate 2.5% return on investment over 90 days.

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

Jpmorgan Global Bond  vs.  Fmi Global Institutional

Jpmorgan Global Bond

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Global Bond are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fmi Global Institutional

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fmi Global Institutional are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Fmi 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 Jpmorgan Global and Fmi Global

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

The idea behind Jpmorgan Global Bond and Fmi Global Institutional 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.