Correlation Between Jpmorgan Equity and New World

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

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

Diversification Opportunities for Jpmorgan Equity and New World

0.96

Correlation Coefficient

Jpmorgan Equity  New World

Almost no diversification

The 3 months correlation between Jpmorgan and New is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Income and New World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New World Fund and Jpmorgan Equity 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 Equity Income are associated (or correlated) with New World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New World Fund has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and New World go up and down completely randomly.

Pair Corralation between Jpmorgan Equity and New World

Assuming the 90 days horizon Jpmorgan Equity is expected to generate 1.37 times less return on investment than New World. In addition to that, Jpmorgan Equity is 1.04 times more volatile than New World Fund. It trades about 0.15 of its total potential returns per unit of risk. New World Fund is currently generating about 0.22 per unit of volatility. If you would invest  8,129  in New World Fund on May 7, 2025 and sell it today you would earn a total of  767.00  from holding New World Fund or generate 9.44% return on investment over 90 days.

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

Jpmorgan Equity Income  vs.  New World Fund

Jpmorgan Equity Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Equity Income are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking indicators, Jpmorgan Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

New World Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in New World Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, New World may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Jpmorgan Equity and New World

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

The idea behind Jpmorgan Equity Income and New World 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.