Correlation Between Jpmorgan Income and Catalyst/princeton

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

By analyzing existing cross correlation between Jpmorgan Income Fund and Catalystprinceton Floating Rate, you can compare the effects of market volatilities on Jpmorgan Income and Catalyst/princeton 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 Income with a short position of Catalyst/princeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Income and Catalyst/princeton.

Diversification Opportunities for Jpmorgan Income and Catalyst/princeton

0.92

Correlation Coefficient

Jpmorgan Income  Catalyst/princeton

Almost no diversification

The 3 months correlation between Jpmorgan and Catalyst/princeton is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Income Fund and Catalystprinceton Floating Rat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/princeton and Jpmorgan Income 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 Income Fund are associated (or correlated) with Catalyst/princeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/princeton has no effect on the direction of Jpmorgan Income i.e., Jpmorgan Income and Catalyst/princeton go up and down completely randomly.

Pair Corralation between Jpmorgan Income and Catalyst/princeton

Assuming the 90 days horizon Jpmorgan Income is expected to generate 1.18 times less return on investment than Catalyst/princeton. In addition to that, Jpmorgan Income is 1.19 times more volatile than Catalystprinceton Floating Rate. It trades about 0.21 of its total potential returns per unit of risk. Catalystprinceton Floating Rate is currently generating about 0.29 per unit of volatility. If you would invest  901.00  in Catalystprinceton Floating Rate on May 3, 2025 and sell it today you would earn a total of  19.00  from holding Catalystprinceton Floating Rate or generate 2.11% return on investment over 90 days.

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

Jpmorgan Income Fund  vs.  Catalystprinceton Floating Rat

Jpmorgan Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Income Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Catalyst/princeton

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystprinceton Floating Rate are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Catalyst/princeton 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 Income and Catalyst/princeton

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

The idea behind Jpmorgan Income Fund and Catalystprinceton Floating Rate 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.