Correlation Between JPMorgan Fundamental and Cambria Micro

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

By analyzing existing cross correlation between JPMorgan Fundamental Data and Cambria Micro And, you can compare the effects of market volatilities on JPMorgan Fundamental and Cambria Micro 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 Fundamental with a short position of Cambria Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and Cambria Micro.

Diversification Opportunities for JPMorgan Fundamental and Cambria Micro

0.98

Correlation Coefficient

JPMorgan Fundamental  Cambria Micro

Almost no diversification

The 3 months correlation between JPMorgan and Cambria is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and Cambria Micro And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Micro And and JPMorgan Fundamental 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 Fundamental Data are associated (or correlated) with Cambria Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Micro And has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and Cambria Micro go up and down completely randomly.

Pair Corralation between JPMorgan Fundamental and Cambria Micro

Given the investment horizon of 90 days JPMorgan Fundamental is expected to generate 1.16 times less return on investment than Cambria Micro. But when comparing it to its historical volatility, JPMorgan Fundamental Data is 1.5 times less risky than Cambria Micro. It trades about 0.15 of its potential returns per unit of risk. Cambria Micro And is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,146  in Cambria Micro And on May 7, 2025 and sell it today you would earn a total of  204.00  from holding Cambria Micro And or generate 9.51% return on investment over 90 days.

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

JPMorgan Fundamental Data  vs.  Cambria Micro And

JPMorgan Fundamental Data

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Fundamental Data are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental indicators, JPMorgan Fundamental may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Cambria Micro And

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cambria Micro And are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, Cambria Micro may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with JPMorgan Fundamental and Cambria Micro

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

The idea behind JPMorgan Fundamental Data and Cambria Micro And 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.