Correlation Between Jpmorgan Mid and Fidelity Money

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

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

Diversification Opportunities for Jpmorgan Mid and Fidelity Money

0.4

Correlation Coefficient

Jpmorgan Mid  Fidelity Money

Very weak diversification

The 3 months correlation between Jpmorgan and Fidelity is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Mid Cap and Fidelity Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Money Market and Jpmorgan Mid 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 Mid Cap are associated (or correlated) with Fidelity Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Money Market has no effect on the direction of Jpmorgan Mid i.e., Jpmorgan Mid and Fidelity Money go up and down completely randomly.

Pair Corralation between Jpmorgan Mid and Fidelity Money

If you would invest  3,764  in Jpmorgan Mid Cap on May 4, 2025 and sell it today you would earn a total of  536.00  from holding Jpmorgan Mid Cap or generate 14.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Jpmorgan Mid Cap  vs.  Fidelity Money Market

Jpmorgan Mid Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Mid Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Jpmorgan Mid showed solid returns over the last few months and may actually be approaching a breakup point.

Fidelity Money Market

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Money Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fidelity Money 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 Mid and Fidelity Money

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

The idea behind Jpmorgan Mid Cap and Fidelity Money Market 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.