Correlation Between Jpmorgan Income and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Income and Loomis Sayles 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 Income and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Income Fund and Loomis Sayles Strategic, you can compare the effects of market volatilities on Jpmorgan Income and Loomis Sayles 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 Income with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Income and Loomis Sayles.
Diversification Opportunities for Jpmorgan Income and Loomis Sayles
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and Loomis is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Income Fund and Loomis Sayles Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Strategic and Jpmorgan Income 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 Income Fund are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Strategic has no effect on the direction of Jpmorgan Income i.e., Jpmorgan Income and Loomis Sayles go up and down completely randomly.
Pair Corralation between Jpmorgan Income and Loomis Sayles
Assuming the 90 days horizon Jpmorgan Income Fund is expected to generate 0.7 times more return on investment than Loomis Sayles. However, Jpmorgan Income Fund is 1.42 times less risky than Loomis Sayles. It trades about 0.08 of its potential returns per unit of risk. Loomis Sayles Strategic is currently generating about 0.05 per unit of risk. If you would invest 779.00 in Jpmorgan Income Fund on January 25, 2024 and sell it today you would earn a total of 54.00 from holding Jpmorgan Income Fund or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Income Fund vs. Loomis Sayles Strategic
Performance |
| Timeline |
| Jpmorgan Me Fund |
| Loomis Sayles Strategic |
Jpmorgan Income and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Income and Loomis Sayles
The main advantage of trading using opposite Jpmorgan Income and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Income position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Jpmorgan Income vs. Jpmorgan Smartretirement 2035 | Jpmorgan Income vs. Jpmorgan Smartretirement 2035 | Jpmorgan Income vs. Jpmorgan Smartretirement 2035 | Jpmorgan Income vs. Jpmorgan Smartretirement 2035 |
| Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Asg Managed Futures | Loomis Sayles vs. Natixis Oakmark | Loomis Sayles vs. Natixis Oakmark International |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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