Correlation Between Jpmorgan Large and American Mutual

Can any of the company-specific risk be diversified away by investing in both Jpmorgan Large and American Mutual 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 American Mutual 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 American Mutual Fund, you can compare the effects of market volatilities on Jpmorgan Large and American Mutual 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 American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Large and American Mutual.

Diversification Opportunities for Jpmorgan Large and American Mutual

0.99

Correlation Coefficient

Jpmorgan Large  American Mutual

No risk reduction

The 3 months correlation between Jpmorgan and American is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Large Cap and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual 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 American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Jpmorgan Large i.e., Jpmorgan Large and American Mutual go up and down completely randomly.

Pair Corralation between Jpmorgan Large and American Mutual

Assuming the 90 days horizon Jpmorgan Large Cap is expected to generate 1.26 times more return on investment than American Mutual. However, Jpmorgan Large is 1.26 times more volatile than American Mutual Fund. It trades about 0.23 of its potential returns per unit of risk. American Mutual Fund is currently generating about 0.19 per unit of risk. If you would invest  2,012  in Jpmorgan Large Cap on May 5, 2025 and sell it today you would earn a total of  227.00  from holding Jpmorgan Large Cap or generate 11.28% return on investment over 90 days.

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

Jpmorgan Large Cap  vs.  American Mutual Fund

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 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

American Mutual

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in American Mutual Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, American Mutual may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Jpmorgan Large and American Mutual

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

The idea behind Jpmorgan Large Cap and American Mutual 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.