Correlation Between Jpmorgan Large and Litman Gregory

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

By analyzing existing cross correlation between Jpmorgan Large Cap and Litman Gregory Masters, you can compare the effects of market volatilities on Jpmorgan Large and Litman Gregory 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 Large with a short position of Litman Gregory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Large and Litman Gregory.

Diversification Opportunities for Jpmorgan Large and Litman Gregory

-0.73

Correlation Coefficient

Jpmorgan Large  Litman Gregory

Pay attention - limited upside

The 3 months correlation between Jpmorgan and Litman is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Large Cap and Litman Gregory Masters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litman Gregory Masters and Jpmorgan Large 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 Large Cap are associated (or correlated) with Litman Gregory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litman Gregory Masters has no effect on the direction of Jpmorgan Large i.e., Jpmorgan Large and Litman Gregory go up and down completely randomly.

Pair Corralation between Jpmorgan Large and Litman Gregory

Assuming the 90 days horizon Jpmorgan Large Cap is expected to generate 0.14 times more return on investment than Litman Gregory. However, Jpmorgan Large Cap is 7.22 times less risky than Litman Gregory. It trades about 0.28 of its potential returns per unit of risk. Litman Gregory Masters is currently generating about -0.13 per unit of risk. If you would invest  7,823  in Jpmorgan Large Cap on May 6, 2025 and sell it today you would earn a total of  1,211  from holding Jpmorgan Large Cap or generate 15.48% return on investment over 90 days.

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

Jpmorgan Large Cap  vs.  Litman Gregory Masters

Jpmorgan Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Large Cap are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan Large showed solid returns over the last few months and may actually be approaching a breakup point.

Litman Gregory Masters

Risk-Adjusted Performance

Very Weak

Over the last 90 days Litman Gregory Masters 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 technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Jpmorgan Large and Litman Gregory

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

The idea behind Jpmorgan Large Cap and Litman Gregory Masters 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..