Correlation Between Jpmorgan Trust and Multi-index 2010

Can any of the company-specific risk be diversified away by investing in both Jpmorgan Trust and Multi-index 2010 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 Trust and Multi-index 2010 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jpmorgan Trust Iv and Multi Index 2010 Lifetime, you can compare the effects of market volatilities on Jpmorgan Trust and Multi-index 2010 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 Trust with a short position of Multi-index 2010. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Trust and Multi-index 2010.

Diversification Opportunities for Jpmorgan Trust and Multi-index 2010

0.0

Correlation Coefficient

Jpmorgan Trust  Multi-index 2010

Pay attention - limited upside

The 3 months correlation between Jpmorgan and Multi-index is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Trust Iv and Multi Index 2010 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2010 and Jpmorgan Trust 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 Trust Iv are associated (or correlated) with Multi-index 2010. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2010 has no effect on the direction of Jpmorgan Trust i.e., Jpmorgan Trust and Multi-index 2010 go up and down completely randomly.

Pair Corralation between Jpmorgan Trust and Multi-index 2010

Assuming the 90 days horizon Jpmorgan Trust is expected to generate 3.0 times less return on investment than Multi-index 2010. But when comparing it to its historical volatility, Jpmorgan Trust Iv is 2.78 times less risky than Multi-index 2010. It trades about 0.13 of its potential returns per unit of risk. Multi Index 2010 Lifetime is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  852.00  in Multi Index 2010 Lifetime on July 19, 2025 and sell it today you would earn a total of  231.00  from holding Multi Index 2010 Lifetime or generate 27.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.28%
Values	Daily Returns

Jpmorgan Trust Iv  vs.  Multi Index 2010 Lifetime

Jpmorgan Trust Iv

Risk-Adjusted Performance

Weakest

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

Multi Index 2010

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Index 2010 Lifetime are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Multi-index 2010 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 Trust and Multi-index 2010

The main advantage of trading using opposite Jpmorgan Trust and Multi-index 2010 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Trust position performs unexpectedly, Multi-index 2010 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 Multi-index 2010 will offset losses from the drop in Multi-index 2010's long position.

The idea behind Jpmorgan Trust Iv and Multi Index 2010 Lifetime 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.