Correlation Between Jpmorgan Strategic and Mid Cap

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

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

Diversification Opportunities for Jpmorgan Strategic and Mid Cap

0.42

Correlation Coefficient

Jpmorgan Strategic  Mid Cap

Very weak diversification

The 3 months correlation between Jpmorgan and Mid is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Strategic Income and Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Growth and Jpmorgan Strategic 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 Strategic Income are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Growth has no effect on the direction of Jpmorgan Strategic i.e., Jpmorgan Strategic and Mid Cap go up and down completely randomly.

Pair Corralation between Jpmorgan Strategic and Mid Cap

Assuming the 90 days horizon Jpmorgan Strategic is expected to generate 5.26 times less return on investment than Mid Cap. But when comparing it to its historical volatility, Jpmorgan Strategic Income is 21.94 times less risky than Mid Cap. It trades about 0.39 of its potential returns per unit of risk. Mid Cap Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  3,919  in Mid Cap Growth on May 15, 2025 and sell it today you would earn a total of  196.00  from holding Mid Cap Growth or generate 5.0% return on investment over 90 days.

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

Jpmorgan Strategic Income  vs.  Mid Cap Growth

Jpmorgan Strategic Income

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Strategic Income are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Jpmorgan Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mid Cap Growth

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap Growth are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mid Cap 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 Strategic and Mid Cap

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

The idea behind Jpmorgan Strategic Income and Mid Cap Growth 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.

Check out your portfolio center.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.