Correlation Between Jpmorgan International and Foundry Partners

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Can any of the company-specific risk be diversified away by investing in both Jpmorgan International and Foundry Partners 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 International and Foundry Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan International Hedged and Foundry Partners Fundamental, you can compare the effects of market volatilities on Jpmorgan International and Foundry Partners 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 International with a short position of Foundry Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan International and Foundry Partners.

Diversification Opportunities for Jpmorgan International and Foundry Partners

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Jpmorgan and Foundry is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan International Hedged and FOUNDRY PARTNERS FUNDAMENTAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foundry Partners Fun and Jpmorgan International 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 International Hedged are associated (or correlated) with Foundry Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foundry Partners Fun has no effect on the direction of Jpmorgan International i.e., Jpmorgan International and Foundry Partners go up and down completely randomly.

Pair Corralation between Jpmorgan International and Foundry Partners

Assuming the 90 days horizon Jpmorgan International is expected to generate 1.38 times less return on investment than Foundry Partners. But when comparing it to its historical volatility, Jpmorgan International Hedged is 2.73 times less risky than Foundry Partners. It trades about 0.24 of its potential returns per unit of risk. Foundry Partners Fundamental is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,903  in Foundry Partners Fundamental on December 29, 2023 and sell it today you would earn a total of  351.00  from holding Foundry Partners Fundamental or generate 18.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy99.19%
ValuesDaily Returns

JPMorgan International Hedged  vs.  FOUNDRY PARTNERS FUNDAMENTAL

 Performance 
       Timeline  
Jpmorgan International 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan International Hedged are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan International may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Foundry Partners Fun 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Foundry Partners Fundamental are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Foundry Partners is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan International and Foundry Partners Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jpmorgan International and Foundry Partners

The main advantage of trading using opposite Jpmorgan International and Foundry Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan International position performs unexpectedly, Foundry Partners 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 Foundry Partners will offset losses from the drop in Foundry Partners' long position.
The idea behind Jpmorgan International Hedged and Foundry Partners Fundamental 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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