Correlation Between Jpmorgan Emerging and Kamada
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and Kamada 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 Emerging and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Emerging Markets and Kamada, you can compare the effects of market volatilities on Jpmorgan Emerging and Kamada 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 Emerging with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Kamada.
Diversification Opportunities for Jpmorgan Emerging and Kamada
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Kamada is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Jpmorgan Emerging 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 Emerging Markets are associated (or correlated) with Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Kamada go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Kamada
Assuming the 90 days horizon Jpmorgan Emerging is expected to generate 4.93 times less return on investment than Kamada. But when comparing it to its historical volatility, Jpmorgan Emerging Markets is 2.1 times less risky than Kamada. It trades about 0.01 of its potential returns per unit of risk. Kamada is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 177,600 in Kamada on January 17, 2024 and sell it today you would earn a total of 18,400 from holding Kamada or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.15% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Kamada
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Kamada |
Jpmorgan Emerging and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Kamada
The main advantage of trading using opposite Jpmorgan Emerging and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.| Jpmorgan Emerging vs. Jpmorgan International Value | Jpmorgan Emerging vs. Jpmorgan Equity Fund | Jpmorgan Emerging vs. Jpmorgan Mid Cap | Jpmorgan Emerging vs. Jpmorgan High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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