Correlation Between Jpmorgan Large and Shenkman Floating

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

Diversification Opportunities for Jpmorgan Large and Shenkman Floating

0.0

Correlation Coefficient

Jpmorgan Large  Shenkman Floating

Pay attention - limited upside

The 3 months correlation between Jpmorgan and Shenkman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Large Cap and Shenkman Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenkman Floating Rate 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 Shenkman Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenkman Floating Rate has no effect on the direction of Jpmorgan Large i.e., Jpmorgan Large and Shenkman Floating go up and down completely randomly.

Pair Corralation between Jpmorgan Large and Shenkman Floating

If you would invest  891.00  in Shenkman Floating Rate on May 7, 2025 and sell it today you would earn a total of  20.00  from holding Shenkman Floating Rate or generate 2.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Jpmorgan Large Cap  vs.  Shenkman Floating Rate

Jpmorgan Large Cap

Risk-Adjusted Performance

Fair

Over the last 90 days Jpmorgan Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jpmorgan Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Shenkman Floating Rate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Shenkman Floating Rate are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Shenkman Floating 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 Large and Shenkman Floating

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

The idea behind Jpmorgan Large Cap and Shenkman Floating Rate 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.